9911796707
TMI Blog2013 (10) TMI 1544X X X X Extracts X X X X X X X X Extracts X X X X ..... lding section 50 C is not applicable in case of transfer of lease hold rights. Both the issues are discussed separately hereunder: Ground No 1: Written off bad debt: 2. Vide ground no.1, the revenue has objected to the deletion of disallowance of bad debt written off amounting to ₹ 28,49,068/-. 2.1 The assessee company debited a sum of ₹ 28,49,068/- to the P L a/c. under the head interest receivable written off. The assessee had offered the interest amount in question for tax in the relevant years. Since the amount was no more recoverable, the same was written off during the relevant year. However, the Assessing Officer did not find any such sum receivable in the Balance Sheet of the assessee as on 31.03.2006, hence, he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat it is a bad debt unless the A.O. for good reasons holds otherwise. The writing in the accounts no doubt, has to be bonafide. Once that be the case the Assessee is not called upon to discharge any further burden. In our opinion, therefore, we are in agreement with the view taken by the majority constituting the Bench of the ld. Tribunal. 23. The question as framed will have to be answered by holding that after the amendment it is neither obligatory nor is the burden on the assessee to prove that the debt written off by him is indeed a bad debt as long as it is bonafide and based on commercial wisdom or expediency. Appeal disposed of accordingly. 3.1 The ld. DR could not bring to our notice any new fact or proposition of law which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TO (supra), wherein it has been held that lease rights in a plot or land can not be included within the scope of land or building or both as provided u/s 50C and in case of transfer of leasehold rights therein, provisions of section 50C would not apply. The relevant extract of the observations of the Tribunal in the said case of Shri. Atul G. Puranik vs. ITO (supra), is reproduced as under: 11.4 In view of the aforenoted judgments rendered by the Hon ble Apex Court and that of the Hon ble jurisdictional High Court, it is clear that a deeming provision can be applied only in respect of the situation specifically given and hence cannot go beyond the explicit mandate of the section. Turning to sec. 50C, it is seen that the deeming fic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of certain assets. Clause (xxxii) of sec. 5(1) provided that the value, as determined in the prescribed manner, of the interest of the assessee in the assets (not being any land or building or any rights in land or building or any asset referred to in any other clauses of this sub-section) forming part of an industrial undertaking shall be exempt from tax. Here also it is worth noting that a distinction has been drawn between land or building on one hand and or any rights in land or building on the other. Considering the fact that we are dealing with special provision for full value of consideration in certain cases u/s.50C, which is a deeming provision, the fiction created in this section cannot be extended to any asset oth ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
