TMI Blog1989 (3) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 ("the Act") : "Whether, on the facts and in the circumstances of the case and on a proper interpretation of the relevant provisions of the Income-tax Act, 1961, the Appellate Tribunal was right in holding that the Appellate Assistant Commissioner was correct in allowing provision for doubtful debts amounting to Rs. 20,00,461 as a deduction in computing the total income of the assessee ?" The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B of the Act. The Income-tax Officer pointed out that in the profit and loss account for the year in question, the assessee-company claimed provision for doubtful debts in the amount of Rs. 20,00,461 relating to the East Indian Coal Co. Ltd., Bhulanbararee Coal Co. Ltd. and amounts due from various coal companies and amounts written off on settlement or on account of miscellaneous bills. In supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me and allowed the claim of the assessee. Being dissatisfied with the order of the Appellate Assistant Commissioner, the Revenue filed an appeal before the Tribunal. The Tribunal held that the assessee had written off the doubtful debts in the profit and loss account as had been done in CIT/ CEPT v. Jwala Prasad Tiwari [1953] 24 ITR 537 (Bom). The Tribunal observed that it was evident that the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of section 36(1)(vii) also covered doubtful debts, the Income-tax Officer was not justified in ignoring the above provisions. Basically, the questions whether the debt has become bad or doubtful and whether the assessee is entitled to write it off are questions of fact. There is no question of perversity in the finding of the Tribunal raised in this reference. The Tribunal has come to a f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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