TaxTMI 
TaxTMI 
2005 (2) TMI 51
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.... of Rs. 1,84,375 as bad debt out of the dues shown at Rs. 6,61,723 in the books of account could be justified under section 36(1)(vii) read with section 36(2) of the Income-tax Act, 1961? Department/respondent's contention: Relying on the facts Mr. Sailen Dutta, learned counsel for the Revenue, strenuously argued pointing out from the relevant materials available on record that in the present ca....
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...., one is bound by the award passed by the arbitrator which is subject to challenge in appropriate proceedings and which was attempted in a company petition and ultimately the assessee had to accept the amount of the award when it found further attempt to recover the same became futile. Such a decision was taken with ordinary commercial expedience after exhausting all avenues for recovery of the sa....
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....e 1940 Act when the same is made rule of the court and under the 1996 Act as a decree by fiction of section 26 thereof. Thus, the agreement to abide by the award would not be a ground to hold that by accepting the award the assessee had waived or forgone its claim. It is a commercially prudent practice that the parties are free to agree and opt for. Once agreed and opted for, the statute governing....
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....Therefore, it cannot be said that the provisions of sub-section (2) of section 36 were not satisfied. Conclusion: There is a distinction between giving up a claim or waiver of a claim and failure to recover the claim. In this case, attempt was made to recover the same but failure to recover would not amount to waiver or foregoing the claim itself in view of the provisions contained in the Arbitr....