2010 (9) TMI 241

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nue submitted that the Tribunal had erred in law in setting aside the order passed under Section 263 of the Act by the Commissioner of Income Tax (Appeals) [in short, "CIT(A)"]. Ms. Bansal further submitted that the Tribunal had also erred in law in writing off the debts without establishing that the same were bad, as prescribed in Section 36(1)(vii) of the Act. 3. It is pertinent to mention that the Tribunal in the present case had dismissed the revenue's appeal after observing as under:- "4. ……… As per our considered view, the provisions Section 36(1)(vii) as amended vide the Finance Act, 1987 obviate the requirement of establishment of debt as "bad" and that as per the amended law the only requirement is to write off the debt....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....urities & Credits Pvt. Ltd. 292 ITR 339 as held by the Tribunal but also by the orders of the Supreme Court in Civil Appeal No.5293 of 2003 (T.R.F. Limited Vs. Commissioner of Income Tax, Ranchi). The order of the supreme Court is reproduced herein below:- "Heard learned counsel on both sides. In these appeals, we are concerned with Assessment Year 1990-1991 and Assessment Year 1993-1994. Prior to 1st April, 1989, every assessee had to establish, as a matter of fact, that the debt advanced by the assessee had, in fact, become irrecoverable. That position got altered by deletion of the word "established", which earlier existed in Section 36(1)(vii) of the Income Tax Act, 1961 ["Act", for short]. For the sake of clarity, we re-produce h....