TMI Blog2010 (11) TMI 1046X X X X Extracts X X X X X X X X Extracts X X X X ..... arises from the order of CIT(Appeals)- XIII, New Delhi, passed on 15.6.2010 in appeal no. 203/09-10, and it pertains to assessment year 2007-08. The revenue has taken two grounds in the appeal to the effect that on the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in deleting the (i) addition of ₹ 7,86,402/- on account of personal expenditure, and (ii) disallow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P)Ltd. to prepare an application to cater to the project within the time frame work. A liability of ₹ 5,000/- was incurred for preparation of a flat for the occupation of the director of the company. Liability of ₹ 2,39,000/- was in respect of retainership fees payable to R.K. Mal for rendering consultancy on human resources matters. Thus, it was contended that the expenditure was reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is clear that none of the expenditure lead to acquisition of a capital asset or inure benefit of enduring nature to the assessee. Vastu consultancy was merely for re-arranging of furniture in the existing space. It is clearly a revenue expenditure. Preparation of ESOP scheme was with a view to retain the employees and to motivate them when there was a lot of attrition. Therefore, the expenditure w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the account of Bharti Infotel Ltd. and claimed it to be deductible as bad debt. The AO disallowed the claim in computing the total income. However, the ld. CIT(Appeals) allowed the expenditure by mentioning that only two requirements are to be satisfied for deduction of a bad debt (a) it has been taken into account in computing the income earlier, and (b) it has been written off in the books o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Therefore, the twin conditions mentioned in section 36(1)(vii), as it exists for the relevant assessment year, stand satisfied. In view of the amendment in this section, it has been held that it is not necessary for the assessee to prove that the debt became bad in this year. The AO has not challenged that the action of write off is not bona fide. Therefore, it is held that the assessee is enti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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