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2008 (12) TMI 674 - MADRAS HIGH COURTWhether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the amounts of loans and advances outstanding written off by the appellant as not recoverable is not deductible while computing its income? Whether, on the facts and in the circumstances of the case, the Tribunal ought to have appreciated that the appellant had properly evaluated and assessed the recoverability of the loans while arriving on the amount which in their opinion is not recoverable and hence was not right in holding that the debts written off have not become bad during the year ? Held that:- The disallowance of the claim for write off is more on the basis of surmise and not on the basis of evidence available. Therefore, we remand the matter to the Assessing Officer who will examine whether after the assessee had taken possession of the unit, any recovery had been made. As regards claim No. 1, “non-owner driven case”, the matter has already been remanded to the Assessing Officer to determine in which of the cases, the loans are recoverable and whether any guarantor has been proceeded against. In these circumstances, we are not answering the question of law and remanding the matter to the Assessing Officer .
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