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2015 (4) TMI 1257 - AT - Income TaxDisallowance of bad debts written off - Held that:- Now it is quite settled law that, if the bad debts has been written off in the books of account, then it is not necessary for the assessee to establish that debt has become irrecoverable. It is the decision of the assessee to write off the bad debt as irrecoverable in the accounts of the assessee. This proposition has been quite settled in the case of TRF Ltd. Vs. CIT [2010 (2) TMI 211 - SUPREME COURT] and catena of other decisions. However, from the perusal of the order of the appellate order, it is seen that, Ld. CIT(A) has made on observations that assessee has not written off the bad debts in the account of M/s. Kiraj Consultants Pvt. Ltd. and in its books of account. Learned counsel has filed a copy of general ledger account and also the parties account of M/s. Kiraj Consultants Pvt. Ltd., wherein it has been clearly shown that amount of ₹ 2,61,09,809/- has been transferred to bad debts. Even in the P&L Account, in schedule 12 the bad debts written off [net of provisions] have been shown. Thus, this matter needs verification from the end of the AO to see, whether the bad debts has in fact been written off in accounts of the assessee or not - Appeal filed by the Assessee is partly allowed for statistical purposes.
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