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TMI Blog2009 (2) TMI 829X X X X Extracts X X X X X X X X Extracts X X X X ..... ut giving any specific finding regarding nature of loan as to whether the same was in any way connected with the business of the assessee and whether any income therefrom was ever shown in the past. An appeal was filed before the Tribunal on the said question being aggrieved by an order so passed by the CIT(A) dt. 3rd business during the relevant previous year. It also appears from the facts that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk of India being the banker of the said borrower and through which the said borrower used to enjoy cash credit facilities and bank advanced money to the said borrower and finally also the said Central Bank of India could not recover the amount as a result whereof the banker had to recourse for the auction of the properties mortgaged to the bank by the said borrower, i.e., M/s Super Tax (India). I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. It appears from s. 36(1)(vii) r/w s. 36(2) bad debt is allowed as deduction if the criteria and/or conditions are fulfilled as mentioned by the assessee which are as follows : 1. The debt or loan should be in respect of business carried on by the assessee. 2. The debt should represent money lent in the ordinary course of business of money or banking or should have been taken into account in co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re cannot be any dispute on this account. It is also held by the Madhya Pradesh High Court in the case of CIT vs. Vallabh Leasing Finance Co. (P) Ltd. (2004) 187 CTR (MP) 20 : (2004) 265 ITR 1 (MP) where the Court held that after amendment of s. 36 it is not necessary to claim the bad debt in the year in which it has become bad. It can be claimed in any later year in which the debt has been writ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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