2017 (6) TMI 1085

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.... i/b PDS Legal for the respondent ORDER P.C. 1. The appeal relates to Assessment Year 2007-08. 2. The department has assailed the order of the Tribunal on the following questions of law as framed in the appeal memo : (a) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in restricting the disallowance of expenses incurred in relat....

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.... not allowable as per the provisions of Section 36(1)(vii) of the Act. (c) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in upholding the decision of the Ld. CIT(A) to delete the disallowance of bad debts in respect of write off of investment / stock of the assessee by observing that the assessee was engaged in the business of sale and pu....

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....s and findings of the cases are clearly distinguishable to each other, as in the case of Cosmo Films Ltd. a sum was retained by the lessor for the security of the leased equipments whereas in this case the assets were retained in the name of lessor for securing the financed amount." 3. The learned Counsel for the appellant fairly concedes that so far as question nos. (a) and (d) are concerned, ....

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....for the respondent submits that the debt was irrecoverable as such tantamount to bad debts. The learned Counsel for the respondent further submits that the accounting principle followed by the assessee is the standard accounting principle. The valuation is made at cost or market value, whichever was low. The market value was NIL. In view of that no error has been committed by the Tribunal in passi....