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TMI Blog2017 (10) TMI 778X X X X Extracts X X X X X X X X Extracts X X X X ..... d against the assessee by the Hon’ble Supreme Court in the case of Southern Technologies Limited Vs. Joint Commissioner of Income Tax reported in (2010 (1) TMI 5 - SUPREME COURT OF INDIA) as held the RBI Directions, 1998, though deviate from accounting practice as provided in the Companies Act, do not override the provisions of the Income-tax Act. Some companies, for example, treat write offs or e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvocate For Appellant Mr. Sanjoy Bhowmik, Mr. A. K. Dey, Advocates For Respondent ORDER The Court : This appeal was admitted by a Coordinate Bench on 7th June, 2010. The point of law involved in this appeal is on disallowance by the assessing officer claim for deduction by the assessee for a sum of ₹ 2,29,60,148/- in respect of non-performing assets from its income for the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income Tax Act, 1961, to the effect that a provision will not amount to writing off and the assessee did not prove that the amount had become bad ? We find that this question stands answered against the assessee by the Hon ble Supreme Court in the case of Southern Technologies Limited Vs. Joint Commissioner of Income Tax reported in (2010) 320 ITR 577 (SC). In this judgment, it has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to accounts. The point which we would like to make is whether such losses are contingent or actual cannot be decided only on the basis of presentation. Such presentation will not bind the authority under the Income-tax Act. Ultimately, the nature of transaction has to be examined. In each case, the authority has to examine the nature of expense/loss. Such examination and finding thereon will not d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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