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TMI Blog2019 (9) TMI 1339X X X X Extracts X X X X X X X X Extracts X X X X ..... profit and loss account and part of the outstanding amount has been written off as bad debts in its books of accounts. In such circumstances, the decision of the Hon ble Supreme Court in the case of T.R.F Ltd v. CIT [ 2010 (2) TMI 211 - SUPREME COURT] squarely apply to the facts of the case. It has been held by the Hon ble Supreme Court that it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable and it is enough if the bad debt is written off as irrecoverable in the accounts of the assessee. Since there is no dispute of write off of bad debts in the books of accounts of the assessee, respectfully following the decision of the Hon ble Supreme Court we hold that the lower authorities are not justifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons for written off. It was explained that bad debts were written off after National Spot Exchange Ltd., [NSEL] failed to make payments on due dates and it came out in public saying that its dealings with various buyers of commodities and warehouses, where the underlying commodities were being stored were dubious and the commodities in the warehouses were vanished and were much below the declared quantities. Therefore, it was explained that the management of the assessee company after considering all the facts of the case came to the conclusion that full outstanding of NSEL could not be recovered and accordingly decided to written off 25% of the outstanding amount as bad debt as on 30.09.2013. It was also explained that as the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and loss account and part of the outstanding amount has been written off as bad debts in its books of accounts it meets the requirement of section 36(2) of the Act and therefore should be allowed as deduction. He strongly relied on the decision of the Hon'ble Supreme Court in the case of T.R.F Ltd. v. CIT [323 ITR 397], wherein it has been held that it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. It has been held that it is enough if the bad debts are written off as irrecoverable in the accounts of the assessee. 5. Ld. DR vehemently supported the orders of the authorities below. 6. We have heard the rival submissions and perused the orders of the authorities below and the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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