Commissioner of Income-tax-6 v. Elcome Marine Services Pvt. Ltd
[Citation -2015-LL-0120-41]
Citation | 2015-LL-0120-41 |
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Appellant Name | Commissioner of Income-tax-6 |
Respondent Name | Elcome Marine Services Pvt. Ltd. |
Court | HIGH COURT OF BOMBAY |
Relevant Act | Income-tax |
Date of Order | 20/01/2015 |
Assessment Year | 2006-07 |
Judgment | View Judgment |
Keyword Tags | substantial question of law • claim of bad debts • written off |
Bot Summary: | 2 The following questions of law have been raised for our consideration: Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in setting aside the order of the CIT(A) and directing the AO to allow the assessee's claim of bad debts when the same were not bad debts Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in holding items claimed for deductions as bad debts u/s. 36(1)(vii) of the Income Tax Act, 1961 when those items were found by the CIT(A) without having any characteristics of debts much less bad debt S.R.JOSHI 1 of 2 ::: Uploaded on - 22/01/2015 ::: Downloaded on - 11/04/2020 12:25:29 ::: itxa-12-2013 3 So far as Question is concerned, Mrs. Bharucha, learned Counsel appearing for the Appeal states that the same is not being pressed. 4 So far as Question is concerned, we find that the Tribunal allowed the Appeal filed by the Respondent Assessee by following the decision of the Supreme Court in TRF Ltd. v/s. It has been held therein that in order to obtain deduction in relation to bad debts, it is not necessary for the assessee to establish that bad debts had in fact, become irrecoverable. It is enough if the bad debt is written off as irrecoverable in the accounts of the assesee to sustain/ claim the above deduction under Section 36(1)(vii) of the Act. 5 Accordingly, as Question stands concluded against the Revenue by the decision of the Apex Court in TRF, no substantial question of law arises. |