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TMI Blog2020 (12) TMI 675X X X X Extracts X X X X X X X X Extracts X X X X ..... ances is a continuing feature in all the past years and has been accepted by the department as part of business by taxing the income under the head 'income from business'. Assessee has been carrying on the money lending business and it has been taxed so under the head business for past 9 years has been over looked. It is pertinent to mention here that holding of money lending licence is not a prerequisite for allowing a claim of bad debts as is held by Supreme Court in TRF Ltd. [ 2010 (2) TMI 211 - SUPREME COURT] and it is enough if the irrecoverable debt is written off in the books of accounts. It is also pertinent to note that non charging of interest is not fatal to the claim for deduction. However, the aforesaid aspect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen the objects of the memorandum of the association of the assessee categorically states to carryon the business of education and training in technical and other fields'. (b) Whether in the facts and circumstances of the case, tribunal erred in denying the bad debts written off as allowable deductions in view of the decision in TRF Ltd. Vs. CIT, 323 ITR 397 ? (c) Whether in the facts and circumstances of the case, the tribunal erred in not taking into consideration the evidences filed by the assessee to substantiate that the interest amount was offered for tax in the earlier years and portion of the debt was taken for computing the income of the assessee. (d) Whether in the facts and circumstances of the case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tribunal' for short). The tribunal by an order dated 11.09.2015 inter alia held that the object of the assessee is not one of imparting education and held that lending of loan to M/s PIE EDUCATION PVT. LTD. cannot be the object of the assessee and therefore, the loan cannot be held to be out of commercial expediency. Accordingly, the claim for deduction under Section 36(1)(vii) of the Act was disallowed. The tribunal further held that the issue pertaining to Section 115JAA of the Act was not argued and the assessee cannot go back to the computation on the issue pertaining to Section 14A of the Act. In the result, the appeal was dismissed. In the aforesaid factual background, the assessee has filed this appeal. 4. Learned counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AGA VS. CIT', 34 ITR 10, 'A.V.THOMAS CO. LTD. VS. CIT', 48 ITR 67, 'ALL GROW FINANCE AND INVESTMENT P LTD. VS. CIT', 338 ITR 496, 'POYSHA OXYGEN (P) LTD VS. ACIT', 19 SOT 711, 'MOHAN MEAKIN LTD VS. CIT', 348 ITR 109, 'CIT VS. VIVEK ENGINEERING CASTING LTD.', 383 ITR 480, 'CIT VS. SMT.PADMA S. BORA', (2015) 54 TAXMANN.COM 319, 'CIT VS. GILLANDERS ARBUTHNOT CO LTD', 138 ITR 763. 5. On the other hand, learned counsel for the revenue submitted that the Commissioner of Income Tax (Appeals) as well as tribunal has recorded a finding in favour of the revenue and the findings are based on proper appreciation of evidence on record. It is further submitted that no substantial qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. We have considered the submissions made by learned counsel for the parties and have perused the record. From perusal of Clause 13 of the memorandum of Association, it is evident that one of the object's of the assessee is to lend money and the assessee has been engaged in money lending business since its inception from financial year 2004-05. The schedule of loans and advances is a continuing feature in all the past years and has been accepted by the department as part of business by taxing the income under the head 'income from business'. However, the fact that assessee has been carrying on the money lending business and it has been taxed so under the head business for past 9 years has been over looked. It is pertinent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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