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2019 (7) TMI 1769 - AT - Income TaxDisallowance of bad debt on account of “Bad Debt- NSEL" - whether claims were premature as final deficiencies in amount could not be arrived at as contemplated u/s 36(2)(ii) of the Act? - CIT (A) deleted the disallowance made by the AO - HELD THAT:- CIT (A) has based his findings on the judgment of the Hon’ble Supreme Court in the case of TRF Ltd.[2010 (2) TMI 211 - SUPREME COURT] has held that it is enough if the bad debt is written off as irrecoverable in the accounts of the assessee. The Ld. CIT (A) has further referred the Circular No. 12/2016 dated 30.05.2016 in which it has been mentioned that in view of the judgment of TRF Ltd. vs. CIT, claim for debt or part thereof in any previous year shall be admissible u/s 36(1)(vii) of the Act, if it is written off as irrecoverable in the books of account of the assessee for that previous year and it fulfills the conditions of stipulated in sub-section 2 of section 36(2) CIT (A) has specifically mentioned that it is not the case of revenue that any of the conditions either u/s 36(1)(vii) or section 36(2) of the Act are not fulfilled by the assessee. Admittedly, the assessee has written off the bad debts in its books of account. In the light of the aforesaid facts, we do not find any legal or factual infirmity in the order passed by the Ld. CIT (A) to interfere with the same. Hence, we dismiss the sole ground of appeal of the revenue and uphold the findings of the Ld. CIT (A). Accordingly, we direct the AO to delete the addition. - Decided in favour of assessee.
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