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TMI Blog2008 (8) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... as already been done – therefore, deduction is allowable u/s 36(1)(vii) – revenue’s appeal dismissed - 329 of 2007 - - - Dated:- 28-8-2008 - BADAR DURREZ AHMED and RAJIV SHAKDHER JJ. Ms. Rashmi Chopra for the appellant. Prem Nath Monga with Manu Monga for the respondent. JUDGMENT The judgment of the court was delivered by BADAR DURREZ AHMED J.— This appeal filed by the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fered a heavy loss due to a fire which broke out in its factory premises in March, 2000. The financial position of the debtor-company deteriorated to such an extent that even the cheques issued by them towards repayment of the loan and interest payments were repeatedly returned unpaid on the ground of insufficiency of funds. Thereafter, the board of directors of the assessee-company took a prudent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng there is no question of the principal amount written off to be treated as capital in nature. (iv) As the appellant has in fact written off the amount in the books of account during the relevant previous year, the compromise deed was only a formality for write off. The decision of ITO v. Anil H. Rastogi reported in [2003] 86 ITD 193 (Mumbai) (TM) is squarely applicable in the appellant's c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this court by the learned counsel for the appellant that the principal amount of Rs. 17.50 lakhs which had been written off as bad debt represented a capital loss, inasmuch as, the assessee was not in the business of money-lending. However, such a plea cannot be raised at this stage, particularly, when the Commissioner of Income-tax (Appeals) has returned a clear finding that the assessee was in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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