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2017 (2) TMI 223 - AT - Income TaxEntitlement for the write-off of bad debts under section 36(1)(vii) r.w.s. 36(2)(i) - Held that:- In the present case, the total debt due from BRCL included a part relating to irrecoverable consultancy fee, which indeed has been offered for tax and has been taken into consideration while computing the income and, therefore, following the parity of reasoning laid down by the Hon'ble Bombay High Court in the case of Pudumjee Pulp & Paper Mills Ltd. (2015 (8) TMI 719 - BOMBAY HIGH COURT) the said fact satisfies the requirement of section 36(2)(i) of the Act even in the context of claim of write-off of the amount of ICD of ₹ 50,00,000/-. Also not disputed that interest on such ICD of ₹ 50,00,000/- advanced to BRCL has also been taken into account for computing the income of the assessee and, therefore, this aspect of the matter also fortifies the decision of the CIT(A) that the requirement of section 36(2)(i) of the Act stands satisfied. It is also notable that the amount due from the BRCL has been written-off as irrecoverable in the account books and, therefore, find no reason to interefere with the decision of the CIT(A) that the claim of the assessee for write off of ₹ 50,00,000/- advanced as ICD to BRCL is allowable as a deduction under section 36(1)(vii) r.w.s.36(2)(i) of the Act. - Decided against revenue
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