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TMI Blog2019 (9) TMI 1339X X X X Extracts X X X X X X X X Extracts X X X X ..... .N. Prasad (JM) 1. This appeal is filed by the assessee against the order of the Ld. Commissioner of Income-tax (Appeals) - 21, Mumbai [hereinafter in short "Ld. CIT(A)"] dated 15.03.2018 for the A.Y. 2014-15. 2. The only issue in the appeal of the assessee is in respect of sustaining the disallowance made by the Assessing Officer towards bad debts written off. 3. Briefly stated the facts ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... failed to make payments on due dates and it came out in public saying that its dealings with various buyers of commodities and warehouses, where the underlying commodities were being stored were dubious and the commodities in the warehouses were vanished and were much below the declared quantities. Therefore, it was explained that the management of the assessee company after considering all the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rved that the case is under investigation and seized assets are yet to be realized and hence the amount cannot be treated as bad. On appeal the Ld.CIT(A) sustained the disallowance. 4. Before us, the Ld. Counsel for the assessee submits that the assessee in its books of accounts has shown the transactions of the purchases and sale of the commodities as trading and accordingly reflected the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upreme Court in the case of T.R.F Ltd. v. CIT [323 ITR 397], wherein it has been held that it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. It has been held that it is enough if the bad debts are written off as irrecoverable in the accounts of the assessee. 5. Ld. DR vehemently supported the orders of the authorities below. 6. We have heard th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee, respectfully following the decision of the Hon'ble Supreme Court we hold that the lower authorities are not justified in not allowing the claim for deduction of bad debts. Thus, we direct the Assessing Officer to delete the disallowance made towards bad debts and recompute the income of the assessee. 7. In the result, appeal of the assessee is allowed. Order pronounced in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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