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2013 (1) TMI 291 - HC - Income TaxAddition being the loan written off as bad debt - ITAT deleted the addition relying on T.R.F. LTD. Versus CIT [2010 (2) TMI 211 - SUPREME COURT] - revenue contested as he debt has not become bad and the assessee was not in the business of money lending - Held that:- The Tribunal committed no error in deleting the addition as decided in T.R.F. LTD. Versus CIT (supra) it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. It is enough if the bad debt is written off as irrecoverable in the accounts of the assessee. The objection of not in the business of money lending was overrulled by relying on CIT v. City Motor Service Ltd. [1965 (12) TMI 126 - MADRAS HIGH COURT ] Additional condition - the assessee had to fulfill to claim bad debt u/s 36(1)(vii) was to satisfy clause (i) of sub-section (2) of section 36 - Held that:- Clause (i) of sub-section (2) of section 36 itself provides that the claim for deduction as bad debt would not be allowed unless such debt or part thereof has been taken into account in computing the income of the assessee of the previous year in which the amount of such debt or part thereof is written off or of an earlier previous year. It is not the case of the revenue that such condition was not satisfied - no question of law arises.
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