TMI Blog2015 (6) TMI 837X X X X Extracts X X X X X X X X Extracts X X X X ..... SUPREME COURT ) as relied upon by the ld.counsel for the assessee would not help to the assessee - Decided against assessee. - I.T.A. No.2074/Ahd/2011 - - - Dated:- 13-2-2015 - Shri N.S. Saini And Shri Kul Bharat JJ. For the Appellant : Shri C.N. Shah, A.R. For the Respondent : Shri Roop Chand, Sr. D.R. ORDER Per Shri Kul Bharat, Judicial Member : This appeal by the Assessee is directed against the order of the Ld.Commissioner of Income Tax(Appeals)-XI, Ahmedabad ( CIT(A) in short) dated 17/06/2011 pertaining to Assessment Year (AY) 2007-08. The Assessee has raised the following grounds of appeal:- 1. On the facts and in the circumstances of the case and in law, the Learned CIT(Appeals) erred in disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RCF Thal. 57664/- 3. R.R.Bangul Bros. 1000/- 4. Suntex. 9040/- 5. Tarpauline Traders. 1842/- 7.The appellant also relies on the decision of Ahmedabad Bench B of Income Tax Appellate Tribunal in the case of Neptune Textile Mills Ltd. Ahmeabad v/s. The ACIT Co. Circle 7 (5) Ahmedabad in ITA No.1788/Ahd/98 Asst.Year 1992-93 wherein account debited to Sundry Balance Cr/Dr.Written off was allowed u/s.36(i) (vii). 8. The appellant craves leave to add, to amend or alter the above grounds as may be deemed necessary. 2. Ground Nos.1 to 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... below were not justified in making the disallowance. He submitted that once the assessee has written off the debt as irrecoverable in its accounts, i.e. sufficient for the purpose of allowing the bad debt in the light of the judgement of Hon ble Apex Court in the case of TRF Ltd. vs. CIT(supra). 3. On the contrary, the ld.Sr.DR vehemently argued that the judgement of the Hon ble Apex Court as relied upon by the ld.counsel for the assessee in the case of TRF Ltd. vs. CIT(supra) is not applicable on the facts of the present case. He drew our attention towards para-6.2.7 of the order of the ld.CIT(A), wherein the ld.CIT(A) has given a finding that the condition of writing off is not fulfilled, therefore the benefit of bad debt written ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itten off account. Perusal of this account reveals that following bad debts have been written off. Sr.No. Name Date Amt. (In Rs.) (1) Reliance Industries Ltd. 30.4.2006 Rs.2,37,554/- (2) Priyanka Carbon Chemicals P.Ltd 28.2.2007 ₹ 73,674/-. Total Rs.3,11,228/- Scrutiny of Priyanka Carbon Chemicals P L A/c reveals that the following amounts are written off. S.No. Name Amt (In Rs.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e accounts. All the above mentioned conditions are to be full filled consecutively to qualify for the deductions. The onus is on assessee to prove that all these conditions are fulfilled. Reliance in this regard is placed on the decision of Tranvancore Tea Estates Co.Ltd. vs. CIT (1992) 197 ITR 528 (Ker.) 6.2.4. Evaluation of facts on record reveals that in the instant case the fulfillment of third condition is doubtful. It is a matter of record that the entries for write off were picked from a running account, and the account remained live before and after the entry was picked up for write off. I am afraid, this is not a right way to write off the debts. The expression write off has been defined in dictionary for accounts Eric L. Koho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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