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2016 (11) TMI 805 - SC - Income TaxReopening of assessment - bad debts written off - Held that:- The assessee has disclosed that the bad debts were transferred to Kotak Mahindra Bank Ltd. for realization, the authority recording the reasons prior to issuance of notice under section 148 of the Income-tax Act, 1961 has specifically recorded that there was no material available on record to indicate that the bad debts have been written off as mandatorily required under section 36(1)(vii) of the Income-tax Act, 1961 as amended with effect from April 1, 1989. If that be so, we find no fault with the notice issued. Consequently, we allow this appeal by setting aside the order of the High Court and dismissing the writ petition filed by the respondent-assessee challenging the said notice. As we have expressed no opinion on the merits of the reassessment, which has been made on December 24, 2010, and it will be open for the respondent-assessee to urge all questions as may be open, in law, in the event the assessee seeks to challenge the reassessment order dated December 24, 2010.
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