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2015 (5) TMI 318 - GUJARAT HIGH COURTDisallowance of writing off of the irrecoverable advances and other debit balances claimed u/s 36(1)(vii) - ITAT allowed claim - Held that:- Tribunal has deleted the addition made by the AO and not allowing the deduction in relation to the aforesaid amount as bad debts and/or it become irrecoverable. It is not in dispute that as such the assessee written off the said debt in the balance sheet. In the case of T.R.F. Ltd. (2010 (2) TMI 211 - SUPREME COURT ), the Hon'ble Supreme Court has observed and held that for claiming deduction in relation to bad debts, the assessee is only required to establish that the debt has been written off and it is necessary to establish that the debt has infact become irrecoverable. In view of the aforesaid decision of the Hon'ble Supreme Court, it cannot be said that the learned Tribunal has committed any error in deleting the addition made by the AO of which the deduction was claimed as written off and as irrecoverable in the accounts of the assessee. - Decided in favour of assessee.
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