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2014 (3) TMI 1157 - HC - Income TaxDeduction by way of bonds, debentures under section 36 (i) (vii) read with section 36 (2) - HELD THAT:- From June 2003 to August 2003 the company made certain payments and in August, 2003 when the amount receivable from the sub-broker was ₹ 26.93 lacs it finally conveyed to the assessee-company that it is not possible to pay any further money. It is at that stage the Assessee company claimed that it was a bad debt. The Tribunal referred to the fact that one Mr.Harshad P.Chokshi is holding substantial shares in the assessee-company and also in SNFPL. This shows that there was a book entry wherein the assessee claimed bad debts as a means to reduce taxable profits. The reasons assigned in para 12 of the order of the Tribunal therefore, are essentially in the backdrop of the peculiar facts and circumstances emerging from the record. No substantial questions of law arising for determination and consideration in this Appeal. This is not a case where there is a controversy or the debt written off as bad in the accounts being required to be established as indeed bad debt. This is a controversy where the claim of bad debts was raised to avoid tax liability. That having been proved and the entire version is termed as a mere eye-wash, that this is not a fit case where substantial questions of law arise for determination in this Appeal.
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