2019 (7) TMI 1769

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....'). 2. Brief facts of the case are that the assessee company engaged in the business of Trader and Broker, filed its return of income for the assessment year under consideration declaring Nil income. The AO passed the assessment order u/s 143 (3) of the Act after making addition of Rs. 2,26,58,328/-, (bad debt claimed by the assessee) and determined the total income of the assessee at Rs. 99,03,851/-. In the first appeal, the Ld. CIT (A) deleted the addition made by the AO. The revenue is in appeal against the said findings of the Ld. CIT (A). 3. The revenue has challenged the impugned order passed by the Ld. CIT (A) on the following grounds:- "1. On the facts and in the circumstances of the case and in law, the Ld. CIT (A) erred in del....

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....ent of the Hon'ble Supreme Court in the case of TRF Ltd. vs. CIT, Ranchi in the case of Civil Appeal No. 5293/5294 of 2003 submitted that after 1st April 1989 it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. It is sufficient if the bad debt is written off as irrecoverable in the accounts of the assessee. The Ld. counsel further pointed out that since the findings of the Ld. CIT (A) are based on the law laid down by the Hon'ble Supreme Court, there is no infirmity in the order of the Ld. CIT (A) and accordingly there is no merit in the revenue's appeal. 6. We have heard the rival submissions and also gone through the entire material on record including the case laws relied upon by the Ld. C....

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....he letter of NSEL written to the CBDT wherein they have indicated that there are enough assets to liquidate and recover the outstanding amounts. In respect of such observation of the AO and mentions in the letter of NSEL, it is stated that the final outcome of the proceedings undertaken by various agencies including EOW. SEBI or the decision of Hon'ble Bombay High Court would be there at any time in future and the same may result into certain receipts by the assessee at any future date which is not determinable at this point of time. This aspect alone cannot invalidate the claim of the assessee when it is legally allowable and procedurally correct. The appellant in its submission has relied upon the decision of Hon'ble Supreme Court in ....