2009 (4) TMI 361

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ngan, Senior Counsel, with Kashinath H. Kithnath, Advocates, for the respondent. JUDGMENT The judgment of the court was delivered by 1. V. GOPALA GOWDA J. - These two income-tax appeals are filed by the Department framing the following common question of law: "Whether the appellate authorities were correct in holding that for the purpose of writing off of bad debts it was not essential....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Act") and also placing reliance on the Gujarat High Court judgment in the case of H. Vithaldas Dhanjibhai Bardanwala v. CIT reported in [1981] 130 ITR 95 (Guj) and holding that the provision for bad and doubtful debts was not merely a provision but is to be viewed as an actual write off. The Explanation inserted to section 36(1) (vii) of the Act by way of amendment through the Finance Act, 2001, w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... debts". It is further held that deduction of provision for non-performing assets out of advances does not amount to writing off. Even though these findings are affirmed by the first appellate authority, the same have been set aside by the Appellate Tribunal without noticing that it is only a provision and in reality it does not amount to writing off of bad debts. No material document is produced ....