TMI Blog2010 (9) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... ct") challenging the order dated 24th July, 2009 passed by the Income Tax Appellate Tribunal (in short "Tribunal") in ITA No. 1630/Del/2009, for the Assessment Year 2004-2005. 2. Ms. Prem Lata Bansal, learned counsel for the revenue submitted that the Tribunal had erred in law in setting aside the order passed under Section 263 of the Act by the Commissioner of Income Tax (Appeals) [in short, "CIT(A)"]. Ms. Bansal further submitted that the Tribunal had also erred in law in writing off the debts without establishing that the same were bad, as prescribed in Section 36(1)(vii) of the Act. 3. It is pertinent to mention that the Tribunal in the present case had dismissed the revenue's appeal after observing as under:- "4. ……… As per our c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mplied with…..." 4. In our considered opinion, the issue raised in the present appeal is no longer res integra as the same is settled not only by the decision of this Court in CIT Vs. Morgan Securities Credits Pvt. Ltd. 292 ITR 339 as held by the Tribunal but also by the orders of the Supreme Court in Civil Appeal No.5293 of 2003 (T.R.F. Limited Vs. Commissioner of Income Tax, Ranchi). The order of the supreme Court is reproduced herein below:- "Heard learned counsel on both sides. In these appeals, we are concerned with Assessment Year 1990-1991 and Assessment Year 1993-1994. Prior to 1st April, 1989, every assessee had to establish, as a matter of fact, that the debt advanced by the assessee had, in fact, become irrecoverable. That ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has, in fact, been written off in accounts of the assessee. When bad debt occurs, the bad debt account is debited and the customer's account is credited, thus, closing the account of the customer. In the case of Companies, the provision is deducted from Sundry Debtors. As stated above, the Assessing Officer has not examined whether, in fact, the bad debt or part thereof is written off in the accounts of the assessee. This exercise has not been undertaken by the Assessing Officer. Hence, the matter is remitted to the Assessing Officer for de novo consideration of the above mentioned aspect only and that too only to the extent of the write off. Subject to above, the civil appeals filed by the assessee are disposed of with no order as to cos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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