TMI Blog2018 (1) TMI 1308X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the gross revenue for assessment year 2004-05. The Commissioner (Appeals) was, therefore, wholly justified in holding that since the assessee was required to pay such amount in relation to a business transaction pursuant to the court order, the same was required to be treated as business loss and business expenditure and required to be allowed. - Tax Appeal No. 901 of 2017 - - - Dated:- 23-1-2018 - Ms. HARSHA DEVANI AND MR. A. S. SUPEHIA, JJ. For The Appellant : Mrs Mauna M Bhatt, Advocate ORAL ORDER ( PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. In this appeal under section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act ) the appellant revenue has challenged the order dated 04.07.2017 ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n appeal to the Tribunal, which upheld the order passed by the Commissioner (Appeals). 5. Mrs. Mauna Bhatt, learned senior standing counsel for the appellant, reiterated the grounds set out in the memorandum of appeal as well as the reasoning adopted by the Assessing Officer in the assessment order. It was submitted that the bad debts claimed by the assessee were not allowable as the condition laid down under section 36(2) of the Act has not been satisfied with respect to the bad debts of ₹ 70,00,000/. It was submitted that the Assessing Officer having rightly disallowed the claim of the bad debts to the extent of ₹ 70,00,000/, the Commissioner (Appeals) as well as the Tribunal were not justified in holding that the same were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction which finally culminated into an order of the court directing the assessee to pay ₹ 70,00,000/to M/s. Maharishi Traders. The assessee had also filed a law suit for recovery of the balance amount of ₹ 11,49,803/, but did not succeed. Consequently, the assessee paid a sum of ₹ 70,00,000/during financial year 2009-10 and along with the outstanding balance amount of ₹ 11,49,803/, the total sum of ₹ 81,49,803/was debited to bad debts account. The assessee alternatively claimed ₹ 70,00,000/as a business loss. The Commissioner (Appeals) was of the view that as the assessee was directed to pay ₹ 70,00,000/to M/s. Maharishi Traders pursuant to the verdict of the court, the same was required to be allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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