TMI Blog2006 (9) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee only furnished a list of debts but the details of three years of such account have not been furnished because the same has been lying with the Assessing Officer. These findings were affirmed by the Tribunal. The bad debts have been disallowed by considering the material on record by finding as a fact that the debt has not been recoverable during the previous year relevant to the assessment year in question and this is a finding of fact and in that view of the matter other questions, even if held to be questions of law, become of academic importance, not affecting the result, it cannot be treated as substantial questions of law. Hence, this appeal cannot be entertained. The appeal, therefore, fails and is hereby dismis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the appellant assessee and the return was submitted on the basis of photostat copy of the books as provided by the Department? 3. Learned counsel has urged that the claim for deduction of bad debt from the gross profits of the assessee has not been allowed primarily on the ground that the assessee has not written off the debt in his books of account for the financial year ending on March 31, 1999, for the relevant assessment year 1999-2000 which is a statutory condition required to be fulfilled before deduction on account of bad and doubtful debts in any assessment year can be claimed while computing taxable income for that year. 4. Having perused the assessment order, the order of the Commissioner (Appeals) and the order of the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction of any amount of bad debts or part thereof is subject to provisions of sub-section (2) of section 36. According to said provision only such sum is to be allowed as deduction by way of bad and doubtful debts which is written off in the account of the assessee for the previous year. 7. Sub-section (2) of section 36 makes it abundantly clear that merely writing off any amount as a bad debt in the books of account irrecoverable does not ipso facto results in deducting the said sum while computing the taxable income in accordance with the provisions of the Income-tax Act, 1961. The requirement of sub-section (2) is to be established even in a case where a sum is written off in the books of account as an irrecoverable debt. The enquiry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n was required to be made but was merely a decision to be taken by the assessee himself whether the debt has become irrecoverable or not until March 31, 1999. 10. Apart from the legal issue, the answer to which is, clear from the provisions itself, the Assessing Officer as well as the appellate authority have examined the claim of the assessee that the debt has actually become irrecoverable during the previous assessment year 1999-2000 and have also held that the assessee has failed to prove that debts in question had actually become irrecoverable during the previous year in question. The material circumstances relied on in this connection are that the assessee only furnished a list of debts but the details of three years of such account ..... X X X X Extracts X X X X X X X X Extracts X X X X
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