2019 (2) TMI 533

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..... sferred an amount of ₹ 2.61 crores to bad debts account. AO also verified that the amount was in fact written of despite which did not grant the assessee's claim. The Tribunal in the impugned judgment referred to and relied upon a decision in the case of TRF Ltd Vs. CIT [2010 (2) TMI 211 - SUPREME COURT]. The Tribunal was of the opinion that the AO could not have questioned the decision of t .....

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..... of the case and in law, the Tribunal was justified in allowing the claim of bad debts and directing the Assessing Officer to verify only whether the bad debts have been written off without appreciating the fact that the assessee had a running account with the sub-broker and carried out transactions with the sub-broker till 31.3.2001 and as such, the debts could be termed to be bad at all as on 31. .....

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..... the assessee to write of the debt as bad debt. 3. We are broadly in agreement with the view of the Tribunal. The assessee found that the debts of M/s. Kiraj Consultants Pvt Ltd were irrecoverable and therefore, wrote of the same as bad debts. The Assessing Officer could not have disallowed the same merely on the ground of doubting with the assessee's wisdom to do so. 4. No question .....

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