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2019 (2) TMI 533 - HC - Income TaxDisallowance of Writing of the bad debts - Held that:- Tribunal in the impugned judgment noticed that the assessee had business relations with M/s. Kiraj Consultants Pvt Ltd who was sub-broker of the assessee. In the course of such business transactions, the assessee transferred an amount of ₹ 2.61 crores to bad debts account. AO also verified that the amount was in fact written of despite which did not grant the assessee's claim. The Tribunal in the impugned judgment referred to and relied upon a decision in the case of TRF Ltd Vs. CIT [2010 (2) TMI 211 - SUPREME COURT]. The Tribunal was of the opinion that the AO could not have questioned the decision of the assessee to write of the debt as bad debt. We are broadly in agreement with the view of the Tribunal. The assessee found that the debts of M/s. Kiraj Consultants Pvt Ltd were irrecoverable and therefore, wrote of the same as bad debts. The Assessing Officer could not have disallowed the same merely on the ground of doubting with the assessee's wisdom to do so. - Decided against revenue.
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