Search Results Page
Search Results
1 - 5 of 5 (0.22 seconds)T.R.F. Limited vs Commissioner Of Income Tax on 12 July, 2006
Once the Assessee is unable to recover the amount from his
debtors, such non-recoverable receipts could appropriately be
legally written off as bad debt by Assessee. This aspect has
been examined by the Hon'ble Apex Court in the case of
T.R.F. Ltd. vs CIT - [2010] 323 ITR 397 (SC) wherein it is
held that after the amendment of Section 36(1 )(vii) of the
Income-tax Act, 1961 with effect from 1st April, 1989, in
order to obtain a deduction in relation to bad debts, it is not
necessary for the assessee to establish that the debt has in
fact, become irrecoverable. It is enough if the bad debt is
written off as irrecoverable in the accounts of the assessee. In
the case of the assessee, it is undisputed that the sum of
Rs.45,84,283/- has already been written off in the books of
account.
Trf Ltd vs Commnr. Of Income Tax on 9 February, 2010
8.1 After perusing the aforesaid Ld. CIT(A)'s finding, we find that Ld.
CIT(A) has referred and followed the decision of the Hon'ble Apex Court
in the case of TRF Ltd. vs. CIT (2010) 323 ITR 397 (SC) wherein it is held
that after the amendment of Section 36(1)((vii) of the Income Tax At,
1961 with effect from 1st April, 1989, in order to obtain a deduction in
relation to bad debts, it is not necessary for the assessee to establish
that the debt has in fact, become irrecoverable. It is enough if the bad
5
debt is written off as irrecoverable in the accounts of the assessee. We
further find that Ld. CIT(A) has rightly observed that it is undisputed that
the sum of Rs. 45,84,283/- has already been written off in the books of
account, hence, the AO was rightly directed to delete the addition of Rs.
45,84,283/-. In view of the above, we are of the view that Ld. CIT(A) has
passed a well reasoned order which does not need any interference on
our part, hence, we uphold the same and dismiss the ground raised by
the Revenue.
Section 36 in The Income Tax Act, 1961 [Entire Act]
Section 144 in The Income Tax Act, 1961 [Entire Act]
1