9911796707
TMI Blog2016 (6) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Appellate Tribunal, "C" Bench, Kolkata, in ITA Nos.2679(Kol) and 2470(Kol) of 2005 relating to the assessment year 2002-03. At the time when the appeal was admitted, the following question of law was formulated: "Whether on the facts and in the circumstances of the case Tribunal was justified in allowing assessee's claim to write off Rs. 2,36,89,387/- on account of advance as irreco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nses that a sum of Rs. 2,36,89,387/- was advanced to CBL. Since the demerger took place pursuant to the order passed in October 1999 with effect from April 1, 1998, contention was raised that the money paid after April 1, 1998 was recoverable. CBL contended that it had rendered services in lieu of such payment. Ultimately, the assessee appointed a chartered accountant. The chartered accountant, af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to examine the reality of the scheme of the CBL and the claim of the CBL as correct. Besides that, it was undisputed that the CBL has been declared as sick industry by the Board for Financial and Industrial Reconstruction and hence any dues from it cannot be recovered as there is prohibition contained under Sick Industries Act. Basing on these factual aspects, the assessee has finally decided not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lized during the period under consideration by the report of the Chartered Accountant referring, inter alia that the CBL has insured amount during that period and it was declared as sick industry by BIFR and any amount from such industry is not recoverable as there is prohibition contained in the Sick Industries Act. Then only the assessee has determined finally that the amount is irrecoverable fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hy was the aforesaid expenditure not an allowable expenditure. He contended that in order to write off the amount as bad debt, the same should have been routed through the profit and loss account of earlier years. That question did not arise in the facts of this case. No other submission was advanced. We, therefore, find no merit in the contention and the contention raised is answered in the affi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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