2025 (1) TMI 1055

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....ereinafter 'the ld. CIT(A)'] pertaining to AYs 2015-16, 2016-17 and 2017-18. 2. Since the facts in the captioned appeals are identical, they were heard together and are disposed off by this common order for the sake of convenience and brevity. 3. Briefly stated the facts of the case are that the assessee is a registered partnership firm, engaged in the business of trading in diamonds and commodities, trading in shares, Future and Option & securities, etc. The return of income for A.Y. 2015-16 was electronically filed, declaring loss of (-) Rs. 5,94,42,028/-. 4. During the course of scrutiny assessment proceedings, the AO noticed that the assessee has claimed bad debt written off of Rs. 13 crore. The basis for this claim was due to ....

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.... vs. Durga Prasad More, (1971) 82 ITR 540 (SC) and Sumati Dayal vs. CIT, (1995) 214 ITR 801 (SC). The Sr.DR further pointed out that the assessee did not comply with Accounting Standard AS-5 and prayed for reversal of the order of the CIT(A). 8. We have given a thoughtful consideration to the orders of the authorities below. 9. It is an undisputed fact that the assessee entered into the contract prior to the action of EOW and suspension of NSEL. The following circular of NSEL needs special mention. "National Spot Exchange Limited Circular Ref. No. : NSEL/TRD/2013/065                          &nbsp....

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....erge the delivery and settlement of all pending contracts with effect from today and to defer it for a period of 15 days and consequently, the positions outstanding in the contracts will be settled by way of delivery and payment after expiry of 15 days. iii. A revised settlement calendar will be announced for contracts due for settlement after such 15 days period. 4. It is clarified that the trading and settlement as well as physical delivery pertaining to e-series contracts like e-gold, e-silver etc. will continue as usual. 5. It is further clarified that other initiatives of the Exchange such as e-auction, e- procurement, MSP operations on behalf of Government agencies (NAFED and SFAC), etc. shall also continue ....

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.... of sections 36(1)(vii) and 36(2) of the Income Tax Act 1961, (hereafter referred to as the Act) to rationalize the provisions regarding allowability of bad debt with effect from the I" April, 1989. 3. The legislative intention behind the amendment was to eliminate litigation on the issue of the allowability of the bad debt by doing away with the requirement for the assessee to establish that the debt, has in fact, become irrecoverable. However, despite the amendment, disputes on the issue of allowability continue, mostly for the reason that the debt has not been established to be irrecoverable. The Hon'ble Supreme Court in the case of TRF Ltd. In CA Nos. 5292 to 5294 of 2003 vide judgment dated 9.2.2010', has stated that t....