TMI Blog2012 (3) TMI 255X X X X Extracts X X X X X X X X Extracts X X X X ..... in its order had stated that the Assessing Officer has not discussed anywhere in the order that the assessee has written off the bad debts in their accounts. Further, the Tribunal held that the Madhya Pradesh State Road Transport Corpo- ration Ltd., was fully owned, controlled and managed by the Government therefore, it cannot be said that the said amount would be written off as irrecoverable - Held that :- set aside the order of the Income-tax Appellate Tribunal with a direction to rehear the matter afresh after giving opportunity to both parties to sub- stantiate their case and decide the matter in the light of the apex court judgment in the case of T. R. F. Limited v. CIT (2010 -TMI - 76626 - SUPREME COURT) - the respondent not to take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant assessment year is 2006-07 and the corresponding accounting year ended on March 31, 2006. The assessee filed e-return of income on November 6, 2006, admitting income of Rs. 7,35,73,950 and the same was accepted under section 143(1) of the Income-tax Act, 1961 (hereinafter called as "the Act"), on March 30, 2008. Later, the same was taken up for scrutiny and notice under section 143(2) of the Act was issued and the assessment was completed under section 143(3) of the Act and determined the total income at Rs. 8,68,26,700. While completing the assessment, the Assessing Officer allowed the claim of bad debt of Rs. 7,39,52,514 out of the total bad debt at Rs. 8,46,14,046 being the lease amount to be received from Madhya Pradesh State Tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see filed appeal before the Income-tax Appellate Tribunal. The Income-tax Appellate Tribunal dismissed the appeal and held that the principle enunciated in this court judgment in the case of South India Surgical Co. Ltd. v. Asst. CIT [2006] 287 ITR 62 (Mad) was squarely applicable to the facts of the case. There- fore, the order passed by the Commissioner of Income-tax is in accordance with law and accordingly, confirmed the order and rejected the appeal filed by the assessee. Aggrieved by that order, the assessee filed the present appeal raising the above questions of law. 3. The learned senior counsel appearing for the appellant-assessee con- tended that the order passed by the Tribunal is illegal, wrong and without justification. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in accordance with law and the same has to be confirmed. 5. Heard the learned counsel on either side and perused the materials available on record. The honourable apex court in the case of T. R. F. Limited [2010] 323 ITR 397 (SC) considered the scope of the provisions of section 36(1)(vii) of the Act and held that after the amendment it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. It is enough if the bad debt is written off as irrecoverable in the accounts of the assessee. The Supreme Court, in the above cited case, in paragraphs 4 and 5, held as follows (page 398) : "This position in law is well-settled. After April 1, 1989, it is not necessary for the assessee to establish that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble in the accounts. However, the Tribunal in its order had stated that the Assessing Officer has not discussed anywhere in the order that the assessee has written off the bad debts in their accounts. Further, the Tribunal held that the Madhya Pradesh State Road Transport Corpo- ration Ltd., was fully owned, controlled and managed by the Government of Madhya Pradesh and, therefore, it cannot be said that the said amount would be written off as irrecoverable. The Tribunal further held that the decision of this court judgment in South India Surgical Co. Ltd. [2006] 287 ITR 62 (Mad), is squarely applicable to the facts of the case and rejected the contention of the assessee. The apex court judgment in the case of T. R. F. Limited [2010] 323 IT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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