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TMI Blog2015 (5) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... pril, 1989. Prior to 1st April, 1989 Section 36(1)(vii) provided that for an amount of debt or part thereof to be written off it would have to be established that it became a bad debt in the previous year. Therefore, the fact that the said debt had become irrecoverable should have been established. However, after 1st April, 1989 the amended section provided that the amount of bad debt or part thereof which is written off as irrecoverable could be claimed as deduction. Accordingly no fault can be found with the order of the Tribunal. - Decided in favour of assessee. - Income Tax Appeal No. 1319 Of 2013 - - - Dated:- 17-4-2015 - S. C. Dharmadhikari And A. K. Menon,JJ. For the Appellant : Mr Tejveer Singh For the Respondent : Mr A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er set aside the order of the Assessing Officer. 3. Being aggrieved by the order, the Revenue preferred an appeal before the Hon'ble Tribunal on 17.10.2011. The Tribunal confirmed the order of the Commissioner and dismissed the appeal. Hence the Appeal. 4. We have heard Mr.Singh, learned counsel for the Revenue and Mr.Jasani, learned counsel for the Assessee. The Tribunal observed that in order to write off the debts it was not necessary that the debt was irrecoverable and relied upon the decision of the Supreme Court in T.R.F Ltd. Vs. Commissioner of Income Tax (2010) 323 ITR 397, in which the Hon'ble Supreme Court observed that the provisions of section 36(1)(vii) after its amendment with effect from 1st April, 1989 clearly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e been made to recover the same. The assessee acquired a proprietory concern M/s.Sharda International and the assets in the form of advances of the balance sheet of two entities were part of the acquisition. These advances were bad debts and were written off under the provisions of Section 36(1)(vii) as amended and effective from 1st April, 1989. Prior to 1st April, 1989 Section 36(1)(vii) provided that for an amount of debt or part thereof to be written off it would have to be established that it became a bad debt in the previous year. Therefore, the fact that the said debt had become irrecoverable should have been established. However, after 1st April, 1989 the amended section provided that the amount of bad debt or part thereof which is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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