TMI Blog2013 (4) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... [2010 (4) TMI 46 - SUPREME COURT] wherein it has been held that once the provision of doubtful debt has been debited to the profit and loss account and corresponding provision has been credited or reduced from the debtors account in the balancesheet, then, this would amount to writing off. In the present case, the Tribunal recorded a finding of fact that the respondent - assessee has debited the provision of doubtful debt to the profit and loss account and correspondingly reduced the assets by reducing the amount of unsecured loans. On the aforesaid facts, the Tribunal held that this would amount to writing off of the debt. Thus, on examination of facts it concluded that the respondent - assessee has written off the loan and would be entit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct that the Tribunal has recorded a finding of fact that the provision has been written off. Accordingly, we see no reason to entertain question. - ITA No. 2409 of 2011 - - - Dated:- 6-3-2013 - J.P. Devadhar and M.S. Sanklecha, JJ. For the Appellant Suresh Kumar. For the Respondent S.N. Inamdar, Sr. Adv. and Mihir Naniwadekar. JUDGEMENT:- 1. In this appeal by the Revenue for assessment year 2004-05, following questions of law have been proposed for our consideration. "a) Whether, on the facts and circumstances of the case, the Tribunal was right in law in deleting the disallowance of Rs.2,15,764/under Section 14A, even though the expenses were attributable to the earning of dividend income of the Act, and directing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad debt of Rs.1,90,51,000/even though the assessee had made contradictory statements as to the identity of the bad debt (debtor) before the AI and CIT (A) and Tribunal had itself remitted this issue to the AO to ascertain the identity of the bad debt (debtor)? f) Whether, on the facts and circumstances of the case, the Tribunal was justified in deleting the disallowance of Rs.3,06,75,058/on account of long term capital loss claimed by the assessee even though the loss had arisen due to the transfer of unquoted shares of group companies which had been sold to other companies at abysmally low prices to contrive the loss? g) Whether, on the facts and circumstances of the case, the Tribunal was justivied in deleting the disallowance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... written off debt of Rs.1,90,51,000/due fro M/s.Satyayan Construction and Developers P Limited as irrecoverable? k) Whether, on the facts and circumstances of the case, the Tribunal was justified in upholding the decision of the CIT (A), in deleting the addition on account of provision for doubtful debts to the book profit under Section 115JB of the Act without appreciating that the disallowance/addition on account of diminution in the value of assets is mandatory in view of explanation (I) to Section 115JB of the Act? 2. In so far as questions (a) and (b) are concerned, we find that by the impugned order the Tribunal has restored the issue of disallowance under Section 14A of the Income Tax Act, 1961 to the file of the assessing off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, the debt qualifies for deduction under Section 36(1)(vii) read with Section 36(2) of the Income Tax Act, 1961. In view of the finding of fact recorded by the Tribunal that the provision has been written off and reliance placed on the decision of the Apex Court in the matter of Vijaya Bank (supra), we see no reason to entertain question (c). 4. In so far as question (d) is concerned, according to the Revenue, it is a mere facet of question (c). 5. In so far as question (e) is concerned, according to the Revenue, same does not survive in view of the subsequent order dated 14th September 2012 passed by the assessing officer on remand to ascertain the identity of the debtor. 6. In so far as question (f) is concerned, it is the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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