9911796707
TMI Blog2013 (3) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... y modified. 2. The learned CIT(Appeals) has gross erred in law and on facts of the case in confirming disallowance of the claim for deduction of bad debts amounting to ₹ 6,34,073/-. The learned CIT(A) has confirmed the disallowance holding that the appellant assessee is not in the business of money lending or banking business. While confirming the appellant s claim for bad debts amounting to ₹ 6,34,073/-, the learned CIT(Appeals) has grossly erred in law and on facts of the case in not appreciating the fact that the debt in question arose in the normal course of the appellant s business of hire purchase and leasing and that the income which accrued on account of such hire purchase/leasing had already been accounted from in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal. 4. Ld. Sr-AR Shri S.N.Soparkar, for the assessee submitted that issue involved in this case is squarely covered by the judgment of Hon ble Bombay High Court rendered in the case of CIT, Central II v. Shreyas S. Morakhia (2012) 19 taxmann. Commissioner 64 (Bom.) He also placed reliance on the decision of the Hon ble Co-ordinate Bench rendered in the case of DCIT v. Wall Street Finance Ltd. in ITA No. 7022/Mum/2008 dated 30-04-2010, whereas Ld. SR-DR, Shri Rahul Kumar for the Revenue supported the orders of authorities below. 5. We have heard the rival submissions, perused the materials available on record, gone through the orders of authorities below and judgments cited by Ld. AR of the assessee. We find that basis of disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account in the computation of the income, the conditions stipulated in sub-section (2) of section 36 read with section 36(1)(vii) stand satisfied in this case. 6. We are of the considered opinion that in the facts of the present case as noted above, some portion that is interest portion of lease rental income were duly offered to tax by the assessee and therefore, as per these two judgments of Hon ble Bombay High Court and Hon ble Delhi High Court cited by Ld. AR of the assessee, the assessee is eligible for deduction on account of bad debts, as claimed by the assessee because the interest income offered to tax by the assessee out of lease rental income is a part of the debt and therefore, a part of the debt has been taken into accou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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