2011 (11) TMI 832

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....e Respondent/Assessee : Mr. C.S. Aggarwal, Sr. Advocate with Mr. Prakash Kumar, Advocate ORDER This appeal pertains to the assessment year 2002-03. Reassessment order was framed by the Assessing Officer under Section 143 (3) on 25TH February, 2005. However, thereafter, notice was issued on 7th November, 2006 under Section 148 of the Income-Tax Act, (hereinafter referred to as ?the Act?), qua re....

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....ent due to failure on the part of the assessee to disclose truly and fully all material facts. Leading to the aforesaid issues, notice under Section 148 of the Act was issued. The reassessment was framed thereafter. The assessee preferred appeal thereagainst before the CIT (A) . The CIT (A) dismissed the appeal of the assessee herein upholding the validity of the notice under Section 147 of the Ac....

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....essee is nothing but bad debts incurred by the assessee during the course of its normal business operations. Ld. CIT (A) has decided this issue against the assessee on the basis that this loss is related to write off of repossessed assets and is not related to debts as such. We are of the considered opinion that this loss is allowable to the assessee since the loss has been incurred in normal cour....

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....e bad. We, therefore, decide this issue in favour of the assessee since we are in agreement with the ld counsel of the assessee that the judgment of Hon?ble Allahabad High Court followed by the authorities below is not applicable because of change in law as we have noted that section 36(1) (vii) of the Act has been amended w.e.f. 1/4/1989. We, therefore, decide this issue also in favour of the ass....