2017 (9) TMI 1834

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....rities. The return of income for the year under consideration was filed by it on 29.09.2009 declaring a total income of Rs. 6,57,656/-. In the profit and loss account filed along with the said return, a sum of Rs. 1,75,00,000/- was debited by the assessee on account of bad debts written off. In this regard, it was noticed by the AO that the loan of Rs. 4 crores was given by the assessee to M/s. Elbee Services Ltd. on 10.05.1997 and the total amount outstanding on account of the said loan along with the interest to the tune of Rs. 9.85 crores as on 31.03.2003 was written off in part by the assessee from A.Y. 2005-06 and 2009-10. When the assessee was called upon by the AO to offer its explanation in the matter, it was submitted by the assess....

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....ion of Hon'ble Supreme Court in the case of TRF Ltd. vs CIT 323 ITR 397 wherein it was held that the only condition for allowing the deduction on account of bad debts written off as per section 36(1)(vii) as amended from 01.04.1989 is that the relevant debts should be written off in the books of accounts of the assessee. The Ld. CIT (A) however confirmed the disallowance made by the AO u/s 14A by applying Rule 8D by holding that the said rule was mandatory. Aggrieved by the order of the Ld. CIT (A), the revenue and the assessee both are in appeal before the Tribunal on the following grounds. Grounds raised in the assessee's appeal "1. For that ld. CIT (A) erred in holding the disallowance of Rs. 7,66,226 under Rule 8D(2)(iii) out of a....