TMI Blog2021 (12) TMI 1446X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of the Revenue and against the Assessee. Disallowance of bad debts as conditions laid down in Section 36(1)(vii) r.w.s. 36(2) not satisfied - debts have been taken over from the sister concerns - Tribunal allowed the claim - HELD THAT:- Substantial question of law involved in this appeal has already been considered and decided in favour of the assessee by judgment [ 2019 (1) TMI 2017 - MADRAS HIGH COURT ] as held tribunal has taken note of the position that the Memorandum and Articles of Association permitted the assessee to carry on the business of money lending and the transactions in question have been held to be in the realm of business activity. Decided in favour of assessee. - TCA. Nos. 1239 to 1241 of 2009 - - - Dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in TCA. Nos. 1457 and 1458 of 2008, the relevant passage of which, is usefully extracted hereunder: 5. On the Second Question of Levy of Interest under section 234D of the Act on the excess refund made to the Assessee along with the Assessment intimation sent to him under section 143(1) of the Act, the learned senior standing counsel for the Revenue drew our attention to a judgment of this court in the case of Commissioner of Income Tax v. Fisher Sanmar Ltd, (2014) 361 ITR 296 (Mad), wherein, a Division Bench of this Court held that if the regular assessment of the Assessee is made after the amendment of provisions of Section 234D of the Act w.e.f. 01.06.2003, then, the provisions of Section 234D for levy of interest on the excess refu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch is written off as irrecoverable in the accounts of the assessee for the previous year. 6. In the present case, the admitted fact is that the assessee had taken over certain debts from M/s. Elgi Finance Ltd. and has offered a sum of Rs.1,74,90,872/- and Rs.87,45,435/- as interest received in respect of the debts in the same assessment years. The same have been assessed to tax. Out of the total debts, a sum of Rs.81.00 lakhs and Rs.53.00 lakhs have been collected back in the present assessment years and a sum of Rs.31,91,237/- and Rs.90,15,652/- have been claimed as bad debts. 7. The claim was disallowed on the ground that the debts have been taken over from the sister concerns voluntarily only as a measure of support to it and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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