TaxTMI 
TaxTMI 
2013 (4) TMI 370
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....rder of Income Tax Appellate Tribunal dated 31.08.2012 in ITA No. 629/Del/2012 pertaining to the assessment year 2007-08. The assessing officer had disallowed a sum of Rs. 3,63,31,532/- which had been shown by the assessee as bad debts written off. 2. The assessee company, consequent upon a scheme of demerger under section 391 to 394 of the Companies Act, 1956, had acquired all the assets and lia....
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....d debts as such act contravened section 36(1)(vii) of the Income-tax Act, 1961. Consequently, he rejected the claim in respect of the bad debts written off. 3. Thereupon, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) who, following the decision of the Supreme Court in the case of CIT v. Veerabhadra Rao: 155 ITR 152 (SC), held that the assesse was entitled to write o....
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.... the decision of the Supreme Court in the case of Veerabhadra Rao (supra) allowed the appeal of the assessee and permitted the assessee to write off the bad debts. 4. Before the Commissioner of Income Tax (Appeals) a point was also raised by the revenue that there must be some evidence to show that the debts had in fact become bad. A similar argument was also sought to be raised by the learned co....