2010 (12) TMI 858

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.... for the appellant-Revenue.   Mr. S.K. Mukhi, Advocate for the respondent-assessee.   AJAY KUMAR MITTAL, J.   This appeal under Section 260A of the Income-Tax Act, 1961 (for short "the Act") has been filed by the Revenue against the order dated 28.9.2005, passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'A', Chandigarh (in short "the Tribunal") in ITA No. 393/C....

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.... The reassessment was completed under Section 143(3)/263 of the Act on 26.2.2003 at a total income of Rs. 15,91,890/-, including Rs. 12,52,350/- which the assessee had claimed as bad debts written off. The Commissioner of Income-tax (Appeals) {in short "the CIT(A)"}, allowed the appeal of the assessee on the issue of disallowance of Rs. 12,52,350/-, vide order dated 16.1.2004. Aggrieved by the sai....

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....an FIR with the Police Station though no fruitful result arrived. The Assessing Officer has not doubted the condition for allowing bad debts. The only objection of the Assessing Officer is that whether it has really become bad? There is an amendment in proviso to Section 36(1)(vii) with effect from 1.4.89 which provides that is bad debt which is written off as irrecoverable in the books of account....

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....arat)   f. 256 ITR 772 (Gujarat)   In view of these facts, we have not found any mistake in the order of the Ld. CIT(A) on the basis of which different view may be possible. The same is upheld."   The CIT(A) had recorded a finding of fact that the amount of Rs. 12,52,350/- had become irrecoverable from M/s. Shakti Enterprises and, therefore, was bad debt. The said finding h....