2013 (2) TMI 267

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..... er the Appellate Tribunal is right in confirming the decision of CIT (A) in deleting the disallowance of bad debts amounting to Rs.54,59,000/-?     3. Whether the Appellate Tribunal is right in confirming the decision of CIT (A) in deleting the disallowance of Rs.3,61,22,730/- made on account of loss on wind mills and change in the method of valuation of stock?" 2. Question No.1 pertains to claim of Rs.48.62 lacs made by the assessee towards loss for compensation paid to one Mekor Company. The Assessing Officer disallowed such claim. CIT(Appeals), however, reversed the findings of the Assessing Officer. On further appeal by the Revenue, the Tribunal remanded the issue for fresh consideration by the Assessing Officer. The Tr .....

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..... matter, such as, whether the payment was actually made, whether Bombay High Court had allowed such claim and whether the assessee had made such a claim for any subsequent years, to our mind, there is nos reason to interfere. 4. With respect to question No.2, we notice that the assessee had claimed a sum of Rs.54.59 lacs by way of bad debts. The Assessing Officer disallowed such claim. CIT(Appeals) as well as the Tribunal reversed the view of the Assessing Officer. The Tribunal in particular, made following observations:     "We have considered rival submissions and perused the orders of the Assessing Officer and the CIT(A). We find that the debts pertained to non-trade parties have not been allowed by the CIT(A) as bad debt .....

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..... were also seized by the Bank having a first charge under the order of the Bombay High Court. Considering such aspects, finding that the title of the machines was also in doubt, the Company decided to write off the same. Revenue's objection that the same was a capital loss was rejected observing that windmills were treated as stock in trade in the assessee's project. The Revenue's contention that the assessee had altered its method of valuation was also dealt with observing that the assessee found that windmill had no realizable value and therefore its valuation was changed to adopt to the cost or its realizable value whichever is less. Such method was found acceptable by different High Courts. Here also, the Tribunal having considered all r .....

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