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TMI Blog2017 (6) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... RDER P.C. 1. The appeal relates to Assessment Year 2007-08. 2. The department has assailed the order of the Tribunal on the following questions of law as framed in the appeal memo : (a) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in restricting the disallowance of expenses incurred in relation to earning of exempt income at 1% of the admini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Act. (c) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in upholding the decision of the Ld. CIT(A) to delete the disallowance of bad debts in respect of write off of investment / stock of the assessee by observing that the assessee was engaged in the business of sale and purchase of shares and therefore the amount written off was a bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , as in the case of Cosmo Films Ltd. a sum was retained by the lessor for the security of the leased equipments whereas in this case the assets were retained in the name of lessor for securing the financed amount." 3. The learned Counsel for the appellant fairly concedes that so far as question nos. (a) and (d) are concerned, the same are covered by the order of this Court in Income Tax Appeal N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt to bad debts. The learned Counsel for the respondent further submits that the accounting principle followed by the assessee is the standard accounting principle. The valuation is made at cost or market value, whichever was low. The market value was NIL. In view of that no error has been committed by the Tribunal in passing the impugned order. The learned Counsel for the respondent relied upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of closing stock. It is evident that the whole of the investment has turned bad and it does not and cannot have any market or intangible value. As such, the assessee has taken its market value as NIL in the books of account. 8. The Apex Court in the case of United Commercial Bank (supra) has observed that in income tax return, the valuation made at cost or market value, which ever was lower, is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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