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TMI Blog2017 (11) TMI 363X X X X Extracts X X X X X X X X Extracts X X X X ..... were given by the assessee in the normal course of its business and when a loss arises due to non-recovery of such advances and when the same is irrecoverable and written off as such, the same should be allowed as a loss while computing the prof it and gains of business. See CIT –vs. - Sumangal Overseas Limited [2011 (11) TMI 45 - DELHI HIGH COURT] - Decided against revenue - I.T.A. No. 275/KOL/ 2014 - - - Dated:- 28-2-2017 - Shri J . Sudhakar Reddy, Accountant Member Shri S.S.Viswanethra Ravi , Judicial Member Shri R.S. Biswas, CIT, D.R. , for the Department Ms. Karishma Jaiswal , A.R. , for the assessee O R D E R Per Shri J. Sudhakar Reddy, A.M. This appeal fi led by the Revenue is directed against the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w in al lowing bad debt to the tune of ₹ 82,34,907/- without considering the fact that the appellant failed to establish as to the legal efforts taken to recover the debt s. Also, it could not be established whether the amounts, written off as bad debt were taken as income in earlier years which is a precondition of writing off of any bad debt . 3. We have heard Shri R.S. Biswas, ld. CIT, D.R. on behaf of the Revenue and Ms. Karishma Jaiswal , ld. A.R. on behalf of the assessee. 4. On a careful consideration of the facts and circumstances of the case and the perusal of papers on record and the orders of the authorities below as well as the case law cited, we hold as follows:- Ground No. 1 is against the deletion of disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ind that the Tribunal in assessee s own case for the assessment year 2007-08 in ITA No. 693/KOL/2012 and ITA No. 554/KOL/2012 for assessment year 2006-07, order dated 29.04.2015 at para 4, considered a similar addition and adjudicated the same in favour of the assessee. As the revenue has not brought anything on record to demonstrate its point of view that the expenditure in question was incurred in the capital field, we uphold the order of the first appellate authority and dismiss this ground of appeal . 5. Ground No. 2 is against the deletion of a disallowance made on account of claim for bad debt of ₹ 82,34,907/-. The Assessing Officer disallowed this claim of bad debts on the ground that the assesese could not establish as to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary resolutions The assessee relied on the judgment of the Hon ble Supreme Court in the case of CIT vs. - Mysore Sugar Company Limited [46 ITR 649(SC)] and by the Hon ble Madras High Court in the case of Devi Films Private Limited vs. - CIT [75 ITR 301 (Mad.). Reliance was placed on the judgment of the Hon ble Supreme Court in the case of CIT vs. - Abdul labhai Abdulkadar reported in 41 ITR 545. Reliance was also placed on the decision of the Kolkata Bench of this Tribunal in case of DCIT vs. - ITC Limited in ITA No. 157/KOL/1996, order dated 30.04.2001. The ld. CIT(Appeals) agreed with the contentions of the ld. counsel for the assessee and granted relief . We find no infirmity in this order of the ld. CIT(Appeals). The advances were g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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