TMI Blog2014 (7) TMI 719X X X X Extracts X X X X X X X X Extracts X X X X ..... minal complaint against the debtor taking into consideration the associated facts and circumstances and his commercial prudence & wisdom - Mere withdrawing of a complaint does not in any manner prove that the assessee had received the payment or the debt had not become bad - The filing of a criminal complaint against the debtor is a fact which proves that the amount was not recoverable otherwise and the assessee in the normal course of business was not supposed to make rounds of the court for the recovery of the amount from the debtor - there was no infirmity in the order of the CIT(A) – Decided against Revenue. - ITA No. 1231/M/2011 - - - Dated:- 16-7-2014 - Shri R. C. Sharma And Shri Sanjay Garg,JJ. For the Petitioner : Shri Nis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... F.Y 2006-07. However, advance of ₹ 45,54,306/ - was not received from M/s Acme Adjorbent Numerals Pvt. Ltd. Therefore it had been claimed as bad debts. The debtor had given a cheque for ₹ 45,54,306/- dated 28/ 12/2006 but the same was not honoured, hence, the assessee filed a complaint in the court. But the said complaint had been withdrawn. The assessee also filed before the AO the copy of court order and copy of ledger account of M/ s. Acme Adjorbent Numerals Pvt. Ltd. in the assessee's books of accounts as on 31/3/2007. The AO however noticed that the assessee had filed an application for withdrawal of suit on 15/1/2008 pleading that the debtor had agreed to pay the amount but he wanted time to settle the claim and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of the other High Courts, deleted the addition and held that it was the bonafide decision of the assessee to write off the disputed amount as bad debt since the same had become non recoverable. The Revenue is thus in appeal before us. 5. We have heard the ld. representatives of both the parties and have also gone through the records. The ld. AO had disallowed the claim of bad debt and had made the addition on the ground that the assessee had filed a complaint against the debtor M/s. Acme Adjorbent Numerals Pvt. Ltd. and later on the said complaint was withdrawn by the assessee on 15.01.08 from the court of the Additional Chief Metropolitan Magistrate. The AO observed that since the assessee was pursuing the case after 31.03.07 and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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