TMI Blog2013 (10) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... the file of AO in both the years for passing fresh orders after necessary examination in the light of Judgment of Hon'ble High Court of Bombay in case of Godrej Boyce Mfg Co Ltd. (Supra) – Decided in favor of Assessee. - ITA No. 5035/Mum/2010, ITA No. 5036/Mum/2010 - - - Dated:- 30-9-2013 - Shri H. L. Karwa And Shri Rajendra Singh,JJ. For the Appellant : Shri J. D. Mistri, P. B. Chhapgar and Ms. A. M. Patel For the Respondent : Shri Deepak Sutariya ORDER Per Rajendra Singh These appeals by the assessee are directed against the orders dated 9.4.2010 and 4.5.2010 of CIT(A) for the assessment years 2006-07 and 2007-08. Since the disputes raised in these appeals are identical, these are being disposed off by a single conso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason for the losses. The AO did not accept the explanation given by the assessee and observed that the loans which related to the sale of capital assets was capital in nature. He, therefore, disallowed the claim of loss and added the same to the total income in both the assessment years. 2.1 Assessee disputed the decision of AO and submitted before CIT(A) that loss on termination of lease agreements were incurred during the course of business activity of lease financing and hence the same was not capital in nature. It was also submitted that in preceding years i.e. assessment years 2002-03 to 2005-06 the assessee had earned profit on termination of lease agreements which were duly credited to the profit loss account which were offered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overed in favour of the assessee by the decision of Delhi bench of Tribunal in case of ACIT Vs. Citicorp Maruti Finance Ltd (Supra) in which it has been held that the claim was allowable as bad debt. It was also pointed out that the said decision of Tribunal has been followed by the Tribunal in case of DCIT Vs. Maruti Countrywide Auto Financial Services Pvt. Ltd in ITA nos. 2181 to 2183/Del/2010 for assessment years 2002-03, 2005-06 and 2006-07. It was accordingly urged that the claim of the assessee should be allowed. The learned DR on the other hand defended the orders of authorities below and placed reliance on the findings given in respective orders. 2.3 We have perused the records and considered the rival contentions carefully. The d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferred to the Judgment of Hon'ble High Court of Kolkata in case of A W Figgies And Co Pvt (254 ITR 63 ) in which it was held that amount advanced by the assessee during the course of business which could not be recovered was held allowable as bad debt u/s 36(2) of the Income Tax Act. Tribunal therefore upheld the order of CIT(A) allowing the claim of bad debt. We also find that said decision of Tribunal in case of M/s Citicorp Maruti Finance Ltd.(Supra) has been followed by the Tribunal in case of Maruti Countrywide Auto Financial Services Pvt. Ltd (Supra). The facts in the case of the assessee are identical. Therefore, following the decision of Delhi Bench of Tribunal (Supra) we set aside the order of CIT(A) and allow the claim of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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