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TMI Blog2013 (4) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... E COURT )- wherein the Supreme Court clearly held that after the amendment which took effect from 01.04. 1989, it was not necessary for the assessee to establish that a debt, in fact, had become irrecoverable. The Supreme Court further observed that it was enough if the bad debts were written off as irrecoverable in the accounts of the assessee. There is no dispute about this fact insofar as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,63,31,532/- which had been shown by the assessee as bad debts written off. 2. The assessee company, consequent upon a scheme of demerger under section 391 to 394 of the Companies Act, 1956, had acquired all the assets and liabilities of two web based portals that were hitherto being operated by the assessee s holding company. Those web based portals were acquired as going concerns. Shareholder ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee filed an appeal before the Commissioner of Income Tax (Appeals) who, following the decision of the Supreme Court in the case of CIT v. Veerabhadra Rao: 155 ITR 152 (SC), held that the assesse was entitled to write off the irrecoverable bad debts although, the said debts had been acquired from the holding company. The Supreme Court in the said decision in the case of Veerabhadra Rao ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the Commissioner of Income Tax (Appeals) a point was also raised by the revenue that there must be some evidence to show that the debts had in fact become bad. A similar argument was also sought to be raised by the learned counsel for the revenue before us. However, we find that the Commissioner of Income Tax (Appeals) has adequately addressed this issue by placing reliance on the Supreme Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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