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TMI Blog2013 (6) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... ied with the reasons given by the learned D.R. and therefore, we condone the delay. 3. The brief facts of the case are that the assessee for the A.Y. 2008-09 had written off an amount of Rs.8,72,26,925/- as bad debts. On perusal of the details before the Assessing Officer, the Assessing Officer noticed that major portion of the loans were out of borrowers who had hailed from Krishna District area. It was submitted by the assessee that it was difficult to recover the loans from these people and in support thereof, the assessee has furnished xerox copies of newspaper clippings in this regard which was discussed by the CIT(A) in his order at para 4.2 of his order which reads as follows :- "From the Telugu Newspaper clippings, the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned CIT(A) at para 5.2 of his order reads as follows : "The appellant submitted that the loan was written off based on its age. He stated that a similar situation arose in Andhra Pradesh in September, 2010 also. Such abnormal situations affected the recoveries in selected pockets, resulting in interest waiver and write off of principal dues from borrowers. It was averred that this back ground was ignored by the Assessing Officer. The representative explained that the Krishna episode is one of the watershed events in Micro Finance Loans and a good amount of research has gone into it, leading to publication of substantial material in the World Wide Web". 5. The Learned Counsel for the assessee argued that the loans written off are well with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. With regard to ground No. 2, the learned D.R. objected to the Order of the CIT(A) by stating that the assessee has not proved that the write off has been in the individual accounts of the borrowers. 10. On the other hand, learned Counsel for the assessee submitted that the write off of entire amount has been during the period of 2 to 3 years. 11. We have heard both the parties and perused the material available on record. We find that the write off has been effected after following well laid down procedure for recovery at various levels in the organisation. Borrowers had also been given facility of re-schedulement which was objected by some of them and the write off was effected only when the borrowers failed in terms of re- schedule ..... X X X X Extracts X X X X X X X X Extracts X X X X
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