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TMI Blog2025 (1) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... due to it and hence was left with no choice but to write off the same. The assessee has actually written off the debt as is evident from the copy of the ledger account placed in the paper book. In our considered opinion, the assessee satisfies the claim in the light of the decision of TRF Ltd [ 2010 (2) TMI 211 - SUPREME COURT] which has been accepted by the Board vide Circular No.12/2016. No reason to interfere with the findings of the CIT(A). All the appeals filed by the Revenue are dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... t honour their commitment and thereby caused wrongful loss to the investors. 5. Taking a leaf out of the EOW report, the AO came to the conclusion that the assessee had not produced any documents which shows that the assessee has made any effort for recovery of said bad debts of Rs. 13 crore and went on to disallow the claim. 6. Before the CIT(A), strong reliance was placed on the decision of the Hon'ble Supreme Court in the case of T.R.F. Ltd. vs. CIT (2010) 323 ITR 397 (SC) and also on the Circular No.12/2016 of the CBDT dated 30.05.2016, the CIT(A) was convinced with the claim of the assessee and allowed the bad debt. 7. Before us, the Sr.DR strongly supported the findings of the AO. It is the say of the DR that since the transactions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to trade in-equilibrium. 3. Under these circumstances and also in view of the grave emergency that has emerged in the market and in order to safeguard interests of all participants and market in general and pursuant to Bye-laws and Rules, the relevant authority is satisfied that continuation of trade in one day forward contracts, other than e-series contracts, is not in the interests of market and that, it is expedient in the general interests of the trade so to do, has decided as under: i. Trading in all contracts, except e-series contracts, stands suspended until further notice. ii. Notwithstanding anything contained in the Bye-laws or any contract, it has been decided to merge the delivery and settlement of all pending contracts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ******** New Delhi, Dated 30th May, 2016 Subject: - Admissibility of claim of deduction of Bad Debt under section 36(1) (vii) read with section 36(2) of the Income-Tax Act, 1961- reg. Proposals have been received by the Central Board of Direct Taxes regarding filing of appeals/pursuing litigation on the issue of allowability of bad debt that are written off as irrecoverable in the accounts of the assessee. The dispute relates to cases involving failure on the part of assessee to establish that the debt is irrecoverable. 2. Direct Tax Laws (Amendment) Act, 1987 amended the provisions of sections 36(1)(vii) and 36(2) of the Income Tax Act 1961, (hereafter referred to as the Act) to rationalize the provisions regarding allowability of b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the notice of all concerned (Sadhana Panwar) DCIT (OSD) (ITJ) CBDT, New Delhi" 12. Considering the facts of the case in totality, in the light of the decision of the Hon'ble Supreme Court (supra), we do not find any reason to interfere with the findings of the CIT(A). All the appeals filed by the Revenue are dismissed. 13. Before parting, the decision of Hon'ble Supreme Court in the case of CIT vs. Kurji Jinabhai Kotecha, (1977) 107 ITR 101 (SC) relied upon by the Sr.DR is misplaced inasmuch as the said decision relates to the speculation business / speculation loss whereas the case in hand is of write off of bad debts. 12. In the result, all the three captioned appeals by the Revenue are dismissed. Order pronounced in the open C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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