TaxTMI 
TaxTMI 
2020 (12) TMI 830
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....ent year 2010-11. The appeal was admitted by a bench of this Court vide order dated 02.11.2017 on the following substantial questions of law: (i) Whether the Tribunal was justified in law in denying the benefit of deduction of bad debts of Rs. 3,33,79,971/- and passed a perverse order on the facts and circumstance of the case? (ii) Whether the Tribunal erred in law in denying the benefit of claim of Bad debts when the amounts which has been claimed by the appellant as bad debts have been offered and assessed to tax in earlier assessment years and the claim is after fulfilling the conditions as envisaged under the provisions of section 36 (1)(vii) r.w.s. 36(2) of the Act and consequently passed a perverse finding on the fac....
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....tunity of hearing on grounds which was not argued by the department nor put to the appellant by the Tribunal at the time of hearing and consequently passed a perverse order which is in grave violation of principles of natural justice under the facts and circumstances of the case? (viii) Whether the Tribunal was correct in law and on facts in dismissing the Miscellaneous petition filed by the appellant under the provisions of section 254(2) of the Act, without properly appreciating and understanding the facts of the case of the appellant under the facts and circumstances of the case? 2. Facts leading to filing of this appeal briefly stated are that assessee is a private limited company and is engaged in the business of manufactur....
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....this appeal. 4. Learned counsel for the assessee submitted that the assessee had exported bags to foreign customers in the past and had incurred unforeseen and additional costs on certain imported raw material in excess of what was anticipated while fixing the supply of bags to the foreign customers on account of severe fluctuations in foreign exchange rates. The assessee had raised debit notes to recover additional costs. However, foreign customers refused to make payments, therefore, the assessee had no option but to write off the same as bad debts. It is also pointed out that similar claim of bad debts for Assessment Year 2009-10 was accepted by the Commissioner of Income Tax (Appeals) as well as by the Tribunal and the revenue did no....
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....tantial question of law arises for consideration in this appeal. It is also urged that without prejudice to the aforesaid contention, even if its to be assumed that debt existed, as the process of write off is not in terms of law laid down by the Supreme Court in the case of VIJAYA BANK LTD. SUPRA, the assessee is not entitled to write off of bad debt as deduction. 6. We have considered the submissions made by learned counsel for the parties and have perused the record. The assessee had exported bags to foreign customers in the past and had incurred unforeseen additional costs on certain imported raw material. In order to recover the additional costs incurred, the assessee had raised debit notes on the foreign customers and credited the ....