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2010 (1) TMI 628 - AT - Income TaxRevision – On the issue of allowability of bad debts - Third member view - after the amendment there is no requirement in law to prove that the debt has actually beome bad. It is enough if an honest judgment has been exercised by the assessee to write off the debt In the instant case, the debt is overdue for more than five years and therefore, it can be said that the assessee has exercised an honest judgment. Thus, when there is no need to enquire whether the debt has become actually bad or not, title allowance thereof by the AO cannot be said to be prejudicial to be interests of Revenue. Since both the conditions under s. 263 are not fulfilled, the CIT iSTTot justified in setting aside the order of the AO. Change in the order of the tribunal - till the order is not communicated to the parties, it remains a proposed order and before communicating it to the parties, the Members can change it as many times as they want to. - Moreover, in a Third Member case, the original Members who differ on certain points, they do not become Junctus officio till the Third Member decides the issue and till effect has been given to the majority view and the same has been communicated to the parties. - Members do not become functus officio till the order is communicated to the parties. Regarding private communication between members of ITAT - since the internal communication extracted by the learned JM has no relevancy at all to resolve the real difference, the same should not have been made a part of the order. - Suffice it to say that the private spat made public in the order has placed the Tribunal in the position of Draupady who was stripped in public gaze, with the difference that for Tribunal there is no Krishna to protect her. My head hangs in shame to see the bare body of the mother that feeds me.
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