2013 (1) TMI 291

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....see is not in the business of banking or money lending? [ii]  Whether on the facts and in the circumstances of the case, the Tribunal was right in law in applying the ratio of the Apex Court's decision in the case of TRF Ltd. v. CIT [2010] 323 ITR 397 when the facts of the instant case are entirely different in so much as the loan was not offered as income, as required u/s 36(1)(vii) of the Income Tax Act, 1961? [iii]  Whether on the facts and in the circumstances of the case, the Tribunal was right in law in taking a contrary view, when an earlier coordinate Bench in this case, had already vide its order bearing ITA No.3774/Ahd/2008 dated 03/04/2009, decided that the condition contained in section 26(1)(vii) is clearly not ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bjection also the Tribunal overruled relying on the decision of the Madras High Court in case of CIT v. City Motor Service Ltd. [1966] 61 ITR 418. 3. We are of the opinion that the Tribunal committed no error. The assessee put-forth a case of written off an advance of Rs. 65 lakhs on the ground that despite filing a suit, the sum was not recoverable. The fact that the assessee had written off such an amount was not seriously in issue. In that view of the matter, the decision of the Supreme Court in the case of T.R.F. Ltd. (supra) would apply. In such decision, the Supreme Court has observed as under: "4. This position in law is well-settled. After April 1, 1989, it is not necessary for the assessee to establish that the debt, in fact,....