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TMI Blog2016 (10) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal has erred in reversing the decision of the CIT(A). After the amendment of Section 36(1)(vii) of the Income-tax Act, 1961 with effect from April 1, 1989, in order to obtain a deduction in relation to bad debts, it is not necessary for the assessee to establish that the debt in fact has become irrecoverable; it is enough if the bad debt is written off as irrecoverable in the accounts of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se and in law, the Income Tax Appellate Tribunal is right in disallowing the bad debt claimed by the assessee? 2. The assessee filed his return of income at ₹ 95,080/- for the assessment year 2003-04. The assessee had written off an amount of ₹ 13,74,991/- as bad debts. Necessary notices were issued and the Assessing Officer vide order dated 13.03.2006 added ₹ 825800/- claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsolvent. In this regard, he has relied upon a decision of the Apex Court in the case of T.R.F. Ltd vs. Commissioner of Income Tax reported in (2010) 323 ITR 397(SC). 5. Mr. Manish Bhatt, learned Senior Counsel appearing with Ms. Mauna Bhatt, learned advocate for the revenue supported the impugned order and submitted that the same having been passed in accordance with law does not call for any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der to obtain a deduction in relation to bad debts, it is not necessary for the assessee to establish that the debt in fact has become irrecoverable; it is enough if the bad debt is written off as irrecoverable in the accounts of the assessee. 7. Accordingly, question raised in the present appeal is answered in favour of assessee and against the revenue. The order passed by the Tribunal is here ..... X X X X Extracts X X X X X X X X Extracts X X X X
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