2013 (10) TMI 1544 - AT - Income Tax

Summary

Issues involved: Appeal by revenue against CIT(A) order deleting disallowances for bad debt and capital gains u/s 50C for assessment year 2007-08.

Bad Debt Issue:
The revenue objected to deletion of disallowance of bad debt written off amounting to Rs. 28,49,068. The CIT(A) found the amount grouped under recoverable amount from a specific entity in the balance sheet. Relying on a Bombay High Court case, the CIT(A) ordered deletion of the disallowance. The AR cited the same legal position, and the Tribunal upheld the CIT(A) decision based on the High Court judgment.

Capital Gains Issue:
The revenue challenged the higher computation of capital gains income u/s 50C, based on sales consideration. The CIT(A) deleted the additions under this head, citing a tribunal case that held section 50C not applicable to leasehold rights transfer. The AR referenced the same tribunal case, emphasizing that lease rights are distinct from 'land or building or both,' thus section 50C does not apply. The Tribunal upheld the CIT(A) decision based on the legal position established by the tribunal case.

In conclusion, the Tribunal dismissed the revenue's appeal based on the findings related to bad debt and capital gains issues.