2007 (5) TMI 235

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....udgment of the court was delivered by V.B. GUPTA, J. - Admit. 2. In the present appeal, Revenue has raised two issues for our consideration. The first issue is as to whether the Income Tax Appellate Tribunal (for short as 'Tribunal') rightly allowed deduction of Rs.10,92,750/-to the Assessee on account of bad debts under Section 36(1)(vii) of the Income Tax Act, 1961 (for short as 'Act'). ....

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....Assessee and such the Assessing Officer held that the debts of Rs.10,92,750/- was not bad at all and the Assessee company had deliberately credited fictitious bad debts and debited to the Profit and Loss A/c to reduce its tax liability and disallowed the same. 5. During the course of the assessment proceedings it was also found by the Assessing Officer that Assessee has paid Rs.4,52,833/- as re....

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....e educational profile of Shri. Neeraj Kanwar, it was adequately explained as justifiable. 7. The Revenue challenged the order passed by Commissioner of Income Tax (Appeal) before the Tribunal and the Tribunal vide impugned order dated 30^th December, 2005 upheld the order of Commissioner of Income Tax (Appeal) on both the issues. 8. Now, the Revenue has challenged the impugned order of the T....

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....ction 36(1)(vii) of the Act which is allowable as business expenditure. 11. As per provisions of Section 36(1)(vii) of the Act, as amended w.e.f.  1st April, 1989, the Assessee was not required to establish that the concerned debt has actually become bad in the relevant year for the purpose of claiming deduction under the Section and the only requirement for claiming this deduction is that....