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2020 (3) TMI 779 - ITAT MUMBAIDeduction of bad debts written off u/s 36(2)(i) - HELD THAT:- As observed by the Hon’ble Supreme Court in the case of TRF Ltd. Vs. CIT [2010 (2) TMI 211 - SUPREME COURT] as per the post-amended Sec.36(1)(vii), it is not necessary for the assessee to establish that the debt in fact, had become irrecoverable. It is enough if the ‘bad debt’ is written off as irrecoverable in the accounts of the assessee. As per the aforesaid settled position of law, we are of the considered view that now when the assessee holding a conviction that the entire amount receivable from NSEL could not be recovered, had thus ‘written off’ 25% of the entire receivable amount i.e. ₹ 1,98,70,000/- in its books of accounts, therefore, there was no justification on the part of the lower authorities to have declined the said claim of deduction so raised by the assessee. We find, that the said issue also covered by the view taken by a coordinate bench of the Tribunal in the case of a ‘sister concern’ of the assessee company viz. M/s Remi Securities and Engineering Limited vs. ACIT, Circle 13(3)(1), Mumbai for A.Y 2014-15 [2019 (9) TMI 1339 - ITAT MUMBAI] - Accordingly, in terms of our aforesaid observations and finding no reason to take a view different from that arrived at by the Tribunal in the case of the ‘sister concern’ of the assessee company, we herein ‘set aside’ the order of the CIT(A) and vacate the disallowance of the assesses claim for ‘bad debt’ - Decided in favour of assessee.
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