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TMI Blog2025 (1) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... AYs 2015-16, 2016-17 and 2017-18. 2. Since the facts in the captioned appeals are identical, they were heard together and are disposed off by this common order for the sake of convenience and brevity. 3. Briefly stated the facts of the case are that the assessee is a registered partnership firm, engaged in the business of trading in diamonds and commodities, trading in shares, Future and Option & securities, etc. The return of income for A.Y. 2015-16 was electronically filed, declaring loss of (-) Rs. 5,94,42,028/-. 4. During the course of scrutiny assessment proceedings, the AO noticed that the assessee has claimed bad debt written off of Rs. 13 crore. The basis for this claim was due to the stoppage of the trading in National Spot Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ati Dayal vs. CIT, (1995) 214 ITR 801 (SC). The Sr.DR further pointed out that the assessee did not comply with Accounting Standard AS-5 and prayed for reversal of the order of the CIT(A). 8. We have given a thoughtful consideration to the orders of the authorities below. 9. It is an undisputed fact that the assessee entered into the contract prior to the action of EOW and suspension of NSEL. The following circular of NSEL needs special mention. "National Spot Exchange Limited Circular Ref. No. : NSEL/TRD/2013/065 July 31, 2013 Dear Member, Suspens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consequently, the positions outstanding in the contracts will be settled by way of delivery and payment after expiry of 15 days. iii. A revised settlement calendar will be announced for contracts due for settlement after such 15 days period. 4. It is clarified that the trading and settlement as well as physical delivery pertaining to e-series contracts like e-gold, e-silver etc. will continue as usual. 5. It is further clarified that other initiatives of the Exchange such as e-auction, e- procurement, MSP operations on behalf of Government agencies (NAFED and SFAC), etc. shall also continue uninterrupted. Members are requested to kindly take note of it. For and on behalf of National Spot Exchange Ltd. Santosh Mansingh Asst. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tention behind the amendment was to eliminate litigation on the issue of the allowability of the bad debt by doing away with the requirement for the assessee to establish that the debt, has in fact, become irrecoverable. However, despite the amendment, disputes on the issue of allowability continue, mostly for the reason that the debt has not been established to be irrecoverable. The Hon'ble Supreme Court in the case of TRF Ltd. In CA Nos. 5292 to 5294 of 2003 vide judgment dated 9.2.2010', has stated that the position of law is well settled. "Afier 1.4.1989, for allowing deduction for the amount of any bad debt or part thereof under section 36(1)(vii) of the Act, it is not necessary for assessee to establish that the debt, in fact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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