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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 ..... s who are about 28034 and also the fact that the borrowers are poor women with low level of literacy, assessee tried his best for recovery by issuing a public notice and other methods appropriate in the circumstances of the case. Thus remit the issue to the file of AO to verify whether write off of bad debts has been with respect to the individual accounts of the assessee's borrowers and after verification the AO shall decide the issue in accordance with law, after giving a reasonable opportunity of being heard to the assessee - appeal of the Revenue is allowed for statistical purposes. - ITA NO.455/H/2012 - - - Dated:- 7-6-2013 - Shri Chandra Poojari And Smt. Asha Vijayaraghavan,JJ. For the Appellant : Shri M. Bhupal Reddy (D.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year under consideration. In some cases of Andhra Jyothi Newspaper clippings, the dates mentioned were 16.3.2006, 14.3.2006 and 11.3.2006, which pertained to the financial year 2006-07, and therefore, to the A.Y. 2007-08". 4. Hence, the Assessing Officer felt that the news items were not related to financial transactions relevant to A.Y. 2008-09. The assessee also submitted the public notice dated 17.11.2007 addressed to the borrowers by the Collector, Krishna District requesting them to clear the balance debts, failing which, further legal action would be initiated for recovery. The Assessing Officer, however, held that the majority of newspaper clippings pertain to the period earlier to the A.Y. 2008-09 and therefore, he disallowed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me bad but only required that the debt should be written off in the books of accounts. He relied on the decision of the Hon'ble Supreme Court in the case of TRF Limited vs. CIT. (2010) 323 ITR 397 (S.C.) 6. The learned CIT(A) after elaborately discussing the issue at paras 6.1 to 6.3 of his order, held that the assessee is eligible for deduction under section 36(1)(vii) of the I.T. Act, 1961 and allowed the claim of write off of bad debts amounting to Rs.8,72,26,925/-. 7. Aggrieved by the Order of the learned CIT(A), the Revenue is in appeal before us and has raised the following grounds : 1. The learned CIT(A) erred both in law and on facts of case. 2. The learned CIT(A) ought to have recognized that the assessee failed to write of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are poor women with low level of literacy, we are of the opinion that assessee tried his best for recovery by issuing a public notice and other methods appropriate in the circumstances of the case. 12. The learned Counsel for the assessee has also stated that the complete list of borrowers with the amounts borrowed with them and also the list of written off amounts has been furnished before the Assessing Officer and the same has been furnished in the form of separate C.D. 13. In these circumstances, we deem it fit to remit the issue to the file of the Assessing Officer to verify whether write off of bad debts has been with respect to the individual accounts of the assessee's borrowers and after verification the Assessing Officer shall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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