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The Commissioner of Income Tax-9 Versus M/s. Sharda Worldwide Exports Pvt Ltd

Disallowance u/s 36(i)(vii) - assessee has not fulfilled the conditions as per section 36(2)with respect of claim of Bad Debt - ITAT allowing the assessee's claim for Bad Debts - Held that:- There was no occasion for the AO to disallow the write off on the ground that no attempts have been made to recover the same. The assessee acquired a proprietory concern M/s.Sharda International and the assets in the form of advances of the balance sheet of two entities were part of the acquisition. Thes .....

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of bad debt or part thereof which is written off as irrecoverable could be claimed as deduction. Accordingly no fault can be found with the order of the Tribunal. - Decided in favour of assessee. - Income Tax Appeal No. 1319 Of 2013 - Dated:- 17-4-2015 - S. C. Dharmadhikari And A. K. Menon,JJ. For the Appellant : Mr Tejveer Singh For the Respondent : Mr Atul K Jasani ORDER P.C. 1. By the present appeal, the Revenue has proposed the following question as a substantial question of law : "(i) .....

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amounts as bad debts. The assessment was reopened by issuance of notice under section 148. The assessee was provided the reasons for reopening the assessment. According to the Assessing Officer, the assessee having taken over the business of one Sharda International, a proprietory concern had acquired inter alia assets in the form of advances given to one Parasrampuria Credits and Investment Ltd. amounting to ₹ 40,96,520/- and one M. J. Patel amounting to ₹ 25,00,000/-, thus, totall .....

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7.10.2011. The Tribunal confirmed the order of the Commissioner and dismissed the appeal. Hence the Appeal. 4. We have heard Mr.Singh, learned counsel for the Revenue and Mr.Jasani, learned counsel for the Assessee. The Tribunal observed that in order to write off the debts it was not necessary that the debt was irrecoverable and relied upon the decision of the Supreme Court in T.R.F Ltd. Vs. Commissioner of Income Tax (2010) 323 ITR 397, in which the Hon'ble Supreme Court observed that the .....

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ct both prior and post 1st April, 1989 : "Pre-1st April, 1989: 36. Other deductions (1) The deductions provided for in the following clauses shall be allowed in respect of the matters dealt with therein, in computing the income referred to in section 28 (i) to (vi) xxxx xxxx xxxx (vii) subject to the provisions of sub-section (2), the amount of any debt, or part thereof, which is established to have become a bad debt in the previous year. Post-1st April, 1989: 36. Other deductions. (1) The .....

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