2021 (2) TMI 359

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....ns made of Rs. 64,80,000/- being disputed income not realized even today worked out by the Assessing Officer. 2. The order of the CIT(A)-1, Pune may be vacated and additions made by the ITO, Ward-1(4) of Rs. 64,80,000/- be deleted. 3. The appellant craves leave to add, amend, alter or delete any one or more of the grounds of appeal as may be required in the nature and circumstances of the case." 2. The only grievance of the assessee in the grounds of appeal is with regard to the addition made by the Assessing Officer of Rs. 64,80,000/- being disputed income not realized. 3. In this appeal additions made of Rs. 64,80,000/- u/s. 145(2) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for unrea....

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....g to show that the balance amount is disputed till date. The company has filed separate suit for the recovery of the said amount. In the light of the said facts company has taken the same on the cash basis and reported accordingly. The Indian Institute of Planning and Management has provided the entire amount in their books without payment and when the matter is sub-judice. In view of the above facts, Assessee Company has taken it on cash basis." The Assessing Officer being not convinced with the submissions of the assessee considered rent receipt of Rs. 64,80,000/- as assessee's income for the year under consideration and added the same to the total income of the assessee. 4. During the Appellate Proceedings before the Ld. CIT(Ap....

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....l did not commit any error in recording a factual finding that in the present case bad debts can be written off as irrecoverable. 6. The Chennai Bench of the Tribunal in the case of Newdeal Finance and Investment Limited Vs. DCIT, 2001 74 ITD 469 had observed that it is for the assessee to decide whether the debt has become bad or not and the Assessing Officer can never insist on production of demonstrative and infallible proof that the debt had become bad. 7. We have perused the case record and heard the rival contentions. We have also considered the judicial pronouncements placed before us. Reverting to the facts of the present case, we find that during the FY 2012-13, the assessee company leased out its premises to International In....