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2012 (3) TMI 255 - HC - Income TaxAO allowed the claim of bad debt out of the total bad debt being the lease amount to be received from Madhya Pradesh State Transport Corporation and the assessee had written off bad debts as per section 36(1)(vii) of the Act - contention of assessee is that the AO on examination of the case and going through the facts held that the claim of bad debt is justifiable in law as the same is written off as irrecoverable in the accounts. Even in the reply to the show-cause notice, it was brought to the notice of the Commissioner of Income-tax about the debt being written off as irrecoverable However, the Tribunal in its order had stated that the Assessing Officer has not discussed anywhere in the order that the assessee has written off the bad debts in their accounts. Further, the Tribunal held that the Madhya Pradesh State Road Transport Corpo- ration Ltd., was fully owned, controlled and managed by the Government therefore, it cannot be said that the said amount would be written off as irrecoverable - Held that :- set aside the order of the Income-tax Appellate Tribunal with a direction to rehear the matter afresh after giving opportunity to both parties to sub- stantiate their case and decide the matter in the light of the apex court judgment in the case of T. R. F. Limited v. CIT (2010 -TMI - 76626 - SUPREME COURT) - the respondent not to take any recovery proceedings against the assessee in respect of tax collection till the matter was disposed of by the Tribunal
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