9911796707
TMI Blog2013 (1) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... overrulled by relying on CIT v. City Motor Service Ltd. [1965 (12) TMI 126 - MADRAS HIGH COURT ] Additional condition - the assessee had to fulfill to claim bad debt u/s 36(1)(vii) was to satisfy clause (i) of sub-section (2) of section 36 - Held that:- Clause (i) of sub-section (2) of section 36 itself provides that the claim for deduction as bad debt would not be allowed unless such debt or part thereof has been taken into account in computing the income of the assessee of the previous year in which the amount of such debt or part thereof is written off or of an earlier previous year. It is not the case of the revenue that such condition was not satisfied - no question of law arises. - TAX APPEAL NO. 98 OF 2012 - - - Dated:- 6-11-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Though multiple questions are framed, the issue is common, namely, of the claim of the assessee of writing off a certain amount of Rs.65 lakhs by way of bad debt. Previously, the issue had reached upto the Tribunal. The Tribunal by an ex-parte order dated 3.4.2009, held against the assessee. Subsequently however, the assessee applied by an application for recall of such an order since he was not present. Such order was granted in favour of the assessee. On 4.1.2010, the Tribunal thereupon proceeded to hear and decide the appeal afresh. In such exercise, the Tribunal ruled in favour of the assessee holding that the claim of bad debt was justified. The Tribunal noted that the Assessing Officer had two objections to allowing such claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bad debt occurs, the bad debt account is debited and the customer's account is credited, thus, closing the account of the customer. In the case of companies, the provision is deducted from sundry debtors. As stated above, the Assessing Officer has not examined whether, in fact, the bad debt or part thereof is written off in the accounts of the assessee. This exercise has not been undertaken by the Assessing Officer. Hence, the matter is remitted to the Assessing Officer for de novo consideration of the abovementioned aspect only and that too only to the extent of the write-off." 4. The other additional condition that the assessee had to fulfill to claim bad debt under section 36(1)(vii) of the Act was to satisfy clause (i) of sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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