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2015 (8) TMI 644 - ITAT AHMEDABADDisallowance of bad debt - CIT (A) partly confirming disallowance - Held that:- It is an undisputed fact that the matter of recovery of debts from Jitendra and Rekha Gupta was referred to arbitrator. On perusing the arbitration award placed on record, it is seen that as per the consent terms, the award was that Assessee was to be paid ₹ 22,50,000/- in full satisfaction of Assessee’s claim in arbitration no. MCX/Legal/127A/08 and in Reference No. MCX/Legal/126A/08 meaning thereby that Assessee was awarded total amount of ₹ 22,50,000/- as against its claim of ₹ 54,68,105/- and therefore the balance amount of ₹ 32,18,105/- (Rs. 54,68,105 - 22,50,000) in terms of the aforesaid arbitration award was not recoverable and was therefore written off. Before us, no material has been placed on record by Revenue to controvert the findings of ld. A.R nor has demonstrated that the Assessee has received extra than the award amount. In view of the aforesaid facts, we are of the view that the deduction of the amount claimed by the Assessee cannot be disallowed. - Decided in favour of assessee.
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