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2014 (7) TMI 719 - AT - Income TaxBad debts written off u/s 36(1)(viii) – Held that:- It is the own prudence of the businessman while conducting the business to decide as to whether the debited amount has become non recoverable or not - If he is of the bonafide view that the debt has become bad and thus he has written off the same, even though, he continues to contest the suit/complaint for recovery of the said debt, it does not mean that his decision was not bonafide – Relying upon Jethabhai Hirji and Jethabhai Ramdas vs. CIT [1977 (11) TMI 11 - BOMBAY High Court] - There may be so many reasons for a businessman which may require him to withdraw the criminal complaint against the debtor taking into consideration the associated facts and circumstances and his commercial prudence & wisdom - Mere withdrawing of a complaint does not in any manner prove that the assessee had received the payment or the debt had not become bad - The filing of a criminal complaint against the debtor is a fact which proves that the amount was not recoverable otherwise and the assessee in the normal course of business was not supposed to make rounds of the court for the recovery of the amount from the debtor - there was no infirmity in the order of the CIT(A) – Decided against Revenue.
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