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TMI Blog2014 (4) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount – Held that:- The question of law at this juncture would not arise for consideration until the appellant establishes before the Assessing Authority that the amount has been actually treated as the business loss based on the instructions issued by the RBI due to the said amount being classified as ‘non-recoverable’ – thus, the matter is remitted back to the AO for fresh reconsideration – Dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charged of in the profit and loss account? 3. The facts which led to the appeal before the Tribunal is that, in respect of the investment made by the appellant in the KCC Bank which was sick, a sum of Rs.32.50 lakhs was irrecoverable deposit and interest for the said assessment year. Accordingly, the same was claimed as business expenditure as contemplated under Section 37 of the Income Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. 6. In that regard, though the learned counsel for the appellant relied upon the judgment of the Hon ble Supreme Court in the case of Kedarnath Jute Mfg. Co. Ltd. , vs. Commissioner of Income Tax reported in (1971) 82 ITR 362 (SC), on the legal aspect that the entry need not be reflected in the books, what is necessary to be noticed is that, from the observations made in the order dated 21.4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treating it as non-recoverable so as to claim the benefit. 9. In that view, the orders passed by the Appellate Tribunal impugned herein as also the Assessment Order (Annexure-B) are set aside. The matter is remitted back to the Assessing Officer to reconsider the matter afresh. Opportunity shall be granted to the appellant to produce all the documents and thereafter reconsideration be made b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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