TaxTMI 
TaxTMI 
2010 (1) TMI 628
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....arned C1T passed under, s. 263 of IT Act with respect to claim of bad debt could be confirmed or the same could be quashed on this issue." The learned AM, besides agreeing to the above, has raised three additional questions which are as follows : "2. Whether initialled orders could be taken as orders of the Tribunal or they should be treated as only proposed orders ? 3. Whether internal notes exchanged between the Members as well as the contents of the order sheet can be termed as privileged communication and therefore same could not be made part of the judicial order ? 4. Whether inclusion of internal notes and private discussions exchanged between the Members, in the judicial order are good for prestige and image of the Tribunal ?" 2....
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....193 : (2009) 313 ITR 128 (Bom). 4.The learned Departmental Representative referred to the provisions of s. 36(l)(vii) of the Act and contended that there was no enquiry by the AO as to whether the amount was taxed in the earlier year or not. There was no clue whatsoever as to whether the AO called for any information or not and therefore, there was no application of mind on his part which has rendered his order to be erroneous and prejudicial to the interests Of Revenue. It was further submitted that the CIT has only referred the matter back to the AO to verify whether the assessee had made any effort for recovery or not and hence, actually no grievance is caused to the assessee.... 5. I have duly considered the rival contentions and the ....
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....igh Court in (2009) 223 CTR (Bom) 382 : (2009) 21 DTR (Bom) 193 : (2009) 313 FTR 128 (Bom) (supra). The issue has also been considered by the jurisdictional High Court in the case of CIT vs. Brilliant Tutorials (P) Ltd. (supra). All these decisions indicate that after the amendment there is no requirement in law to prove that the debt has actually beome bad. It is enough if an honest judgment has been exercised by the assessee to write off the debt In the instant case, the debt is overdue for more than five years and therefore, it can be said that the assessee has exercised an honest judgment. Thus, when there is no need to enquire whether the debt has become actually bad or not, title allowance thereof by the AO cannot be said to be ....