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TMI Blog2013 (12) TMI 631X X X X Extracts X X X X X X X X Extracts X X X X ..... written off by the company - Held that:- Since the loan and interest was receivable from the Directors of the assessee-company itself, therefore, in my considered view written-off the same as bad debt was not justified at the end of the assessee-company. The Director or the Person who manages the affairs of the assessee-company, how the Directors can take a view that the loan paid by them along with interest has become bad? - The amount written-off by the Directors of the assessee-company was just to avoid the taxability which has arisen on account of interest and rental income – Decided against assessee. - ITA. No.7085/Mum/2012 - - - Dated:- 1-2-2013 - Shri R. K. Gupta,JJ. For the Appellant : Shri Paras Savla For the Respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the CIT(A) that to run industrial units and for change of name in various Government records, deposits in one firm or other is required to be given by the companies and to get the refund by the seller of these industrial unites is very difficult for want of many requirements. However, learned CIT(A) was not satisfied with the explanation of the assessee. He noted that assessee had closed down its business and sold various assets and properties. Therefore, there is no business receipt during the year under consideration. The only income is rental income, interest and insurance claim. Therefore, there is no income assessable under the head Business Income and therefore, no business expenditure is allowable to the assessee. About balances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction, then, how these amounts receivable from Government authorities or anybody else are taxable income or written off ? This fact has to be ascertained. Of course, assessee also cannot claim any set off against rental income etc., as there is no business income during the year under consideration. Since, facts are not clear, therefore, the issue is restored to the file of the Assessing Officer for passing a fresh order, after affording a reasonable opportunity of being heard to the assessee. I order accordingly. 6. Remaining issue is in respect of disallowing claim of bad debts on account of interest receivable at Rs.43,88,119/- on the ground that company had claimed bad debt which are collectible and company has not taken proper ef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company. Since the loan and interest was receivable from the Directors of the assessee-company itself, therefore, in my considered view written-off the same as bad debt was not justified at the end of the assessee-company. The Director or the Person who manages the affairs of the assessee-company, how the Directors can take a view that the loan paid by them along with interest has become bad ? It means they want to write-off the amount which is payable by themselves only. It is clear that the amount written-off by the Directors of the assessee-company was just to avoid the taxability which has arisen on account of interest and rental income. I further noted that learned Counsel for the assessee has not commented upon anything in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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