2009 (1) TMI 46

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....DHAR, J. - This writ petition is filed by the Commissioner of Income Tax to challenge the order passed by the I.T.A.T. on 3/7/2007 whereby the Misc. Application No. 360/2007 filed by the respondent No.2 ('assessee' for short) has been allowed. By the said rectification order, a sentence in Para 15 of the original order passed by the Tribunal on 22/12/2006 has been substituted. 2. The assessment....

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....73/- and allowed the claim only to the extent of Rs.1,08,80,898/-. The said amount of Rs.1,08,80,898/-included the amount of lease rent taxed in the year amounting to Rs.92,09,480/- which was held to has become bad debt as irrecoverable. 6. Being aggrieved by the aforesaid order, both the assessee as well as the revenue filed appeals before the I.T.A.T. By its order dated 22/12/2006 the Tribuna....

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....e to be deducted on account of the said amount becoming irrecoverable and hence a bad debt. Therefore, according to the assessee, the aforesaid direction contained in para 15 of the Judgment was uncalled for. The Tribunal agreed with the contention of the assessee and accordingly allowed the Miscellaneous Application by substituting the aforesaid sentence as follows :- "....The learned Assessin....

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....tion to modify its own order in the garb of rectification. 9. We see no merit in the aforesaid contention raised on behalf of the revenue. As rightly held by the Tribunal, the question before the Tribunal was whether the amount of Rs.92,09,480/- which was already taxed on accrual basis in the earlier assessment years could be allowed as deduction under section 36(1)(vii) of the Act on the groun....