TMI Blog2011 (10) TMI 679X X X X Extracts X X X X X X X X Extracts X X X X ..... ) is correct in holding that income from let-out of the amenities should be assessed as income from house property even though there was a separate agreement for let out of amenities. 4. On the facts and circumstances of the case, whether the CIT(A) is correct in allowing the bad debts even though the debts have not become bad. 5. The CIT(A) erred in holding that the necessary remedial action has been taken by initiating the legal action to write off the debts, even though the debts have been settled outside the court for the reasons best known to the assessee. 6. The CIT(A) erred in allowing the claim of the assessee on write off the bad debts in the case of M/s. Panyam Cements Minerals Ltd. even though no legal proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rent, viz. both from the premises as well as the amenities therein to be treated as income under the head house property and has followed the decision of the Hon ble Supreme Court in the case of Shambhu Investments P. Ltd. V.s. CIT (263 ITR 143)-SC. He submitted that on the other issue of allowability of bad debts, the CIT(A) has passed an elaborate speaking order, after discussing all the relevant case-law on the issue and has held that it could be said that since there was no dispute that the transactions of loan/ICD had actually taken place and interest thereon had been offered to tax over the years and assessed as business income, the write off of such bad debts after initiation of legal proceedings by the assessee could not be consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and has rightly concluded that there was no dispute that the transactions of debts/ICDs had actually taken place and interest thereon had been offered to tax over the years and assessed as business income in the hands of the assessee, and as such, write off of such debts after initiation of legal proceedings by the assessee could not be considered as lacking bona fides. There being no mistake in the order of the CIT(A) in the facts of the case on this issue and the issue being covered in favour of the assessee with the decision of the Hyderabad Bench of the Tribunal in assessee s own case for the assessment year 2004-05, we hold that there is no merit in the grounds of appeal of the Revenue on this issue as well. We accordingly reject the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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