TMI Blog2014 (3) TMI 1157X X X X Extracts X X X X X X X X Extracts X X X X ..... yed to the assessee-company that it is not possible to pay any further money. It is at that stage the Assessee company claimed that it was a bad debt. The Tribunal referred to the fact that one Mr.Harshad P.Chokshi is holding substantial shares in the assessee-company and also in SNFPL. This shows that there was a book entry wherein the assessee claimed bad debts as a means to reduce taxable pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... V.B. Joshi for the Appellant. A.L. Malhotra and N.A. Kazi for the Respondent. JUDGMENT 1. This Appeal questions the order passed by the Income Tax Appellate Tribunal on 10.4.2012. The Appellant is the assessee. The Assessment year is 2004-05. 2. In the submission of the learned counsel appearing for the Appellant, a substantial question of law would arise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), it is clarified that it is not necessary to establish that the debt in fact has become bad. The legal position as emerging after the amendment of section 36 (i) (vii) of the Act with effect from 1.4.1989, has been omitted from consideration. Thirdly, in this case there was no dispute that the debt has been written off as bad in the accounts of the appellant-assessee. For all these reasons denia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there was no reason for conflicting versions emerging from the record. Both the authorities have found that the attempt was to avoid liability of income tax on taxable profit. The Tribunal has found that the assessee was doing business with its sister concern namely Sovereign Nariman Broking (P) Ltd whereas Sovereign Nariman Finvest Limited was acting as the assessee company's sub broker. That ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s emerging from the record. In such circumstances, we do not find any substantial questions of law arising for determination and consideration in this Appeal. This is not a case where there is a controversy or the debt written off as bad in the accounts being required to be established as indeed bad debt. This is a controversy where the claim of bad debts was raised to avoid tax liability. That ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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