2013 (5) TMI 663

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.... R. N. Bajoria, Senior Advocate ORDER The Court : This appeal, preferred by the Revenue, has proposed the following questions:- "i) Whether on the facts and in the circumstances of the case the Ld. Tribunal has erred in law in dismissing the appeal of the revenue and upholding the order of the CIT (Appeals) deleting the addition of Rs.2,84,28,000/- being the advance written off by holding....

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....pprehending that the money may not be ultimately realized, the assessee in the year 2003-04 made a provision for bad debt and offered the same for taxation. In the year 2005-06 the amount receivable from the Fertilizers Corporation of India was written off and adjusted against the provision for bad debt. The Assessing Officer disallowed the bad debt on the ground, inter alia, that under Section....

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...., no adverse information (inference ?) can be drawn on the basis of the accounting treatment. It is not a case where deduction was allowed to the assessee when the provision was made. As regards the question whether the debt had been taken into account in computing the assessee's income, it is clear from the two letters of BCCL dated 29/10/2001 and 23/11/2001 that a total number of 1158 bills rais....

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....the assessee for the earlier years. Here it is to be mentioned that the revenue has not been able to show that the trilateral agreement is a bogus agreement or a sham. The revenue has not been able to show that the transaction was in any manner bogus. The revenue has not been able to dislodge the findings of the ld. CIT(A) in para 2.1 to 2.4 of the order. In this circumstances, we are of the view ....