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TMI Blog2021 (12) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... gaz India Pvt. Ltd. could not be recovered - Rreasoning of the AO that the assessee has not made sufficient effort to recover the outstanding due is contrary to the materials on record, considering the fact that the assessee has issued legal notice for recovery of the dues. In any case of the matter, after the amendment to section 36(1)(vii) w.e.f. 01.04.1989, it is not necessary for the assessee to prove that the amount has become irrecoverable despite best efforts. The only requirement is, the amount must have been written off having become irrecoverable. This is the view expressed by the Hon'ble Supreme Court in case of TRF Ltd. [ 2010 (2) TMI 211 - SUPREME COURT] - Decided against revenue. - ITA No. 198/MUM/2021 - - - Dated:- 23- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee contested the aforesaid addition before learned Commissioner (Appeals). Learned Commissioner (Appeals) being convinced with the submissions of the assessee deleted the addition with the following observations:- 5.2 It is seen that M/s.Naftogaz India Pvt. Ltd., a New Delhi based company was awarded a contract by ONGC and in turn subcontracted the work relating to Geo physical Survey, Positioning support for Diving, etc. to the appellant vide various Work orders. Copies of these Work Orders have been submitted in the paper book. It is also observed that during the period 28.04.2008 to 30.04.2010, the appellant raised various invoices on M/s.Naftogaz India Pvt. Ltd. As per its own submission, invoices were raised to the extent of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded that the amount was not a bad debt because the appellant did not take adequate measures to recover the same which were still available to it. In this context, it is observed that the Assessing Officer has neither questioned the authenticity of the Invoices raised or the debt that is outstanding in the name of the appellant. It has also not been contended that the income represented by these debts have not been offered to tax. Considering the same, it is observed that after 01.04.1989, it is not necessary for the appellant to establish that the debt had in fact become irrecoverable. It is enough If the bad debt is written off as irrecoverable in the accounts of the appellant. In the present case, there is no doubt that the debt has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O is unsustainable. As could be seen from the facts on record, assessee was a sub-contractor under M/s Naftogaz India Pvt. Ltd., who was awarded a contract by ONGC. The assessee was assigned the specific work of physical survey, positioning support for diving etc. Subsequently, ONGC cancelled the contract with M/s Naftogaz India Pvt. Ltd. As a result of which the amount of ₹ 2,55,97,771/- due to be received by the assessee from M/s Naftogaz India Pvt. Ltd. could not be recovered. Further, the reasoning of the AO that the assessee has not made sufficient effort to recover the outstanding due is contrary to the materials on record, considering the fact that the assessee has issued legal notice for recovery of the dues. In any case of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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