Triveni Plenty Engg. Ltd. v. Commissioner of Income-tax
[Citation -2017-LL-0427-88]
| Citation | 2017-LL-0427-88 |
|---|---|
| Appellant Name | Triveni Plenty Engg. Ltd. |
| Respondent Name | Commissioner of Income-tax |
| Court | HIGH COURT OF DELHI AT NEW DELHI |
| Relevant Act | Income-tax |
| Date of Order | 27/04/2017 |
| Assessment Year | 1996-97 |
| Judgment | View Judgment |
| Keyword Tags | written off • provisions for bad debts • irrecoverable amount • inadmissibility of deduction |
| Bot Summary: | None has appeared on behalf of the Appellant Assessee. While admitting this appeal filed by the Assessee against the order dated 29th April, 2004 passed by the ITAT in ITA No.3932/D/00 relating to the assessment year 1996-97, by order dated 21st November 2006, the Court framed the following questions for consideration: i. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the claim of deduction of debt written off for Rs.2,94,217/- was not permissible under the provision of Section 36(1)(vii) of the Income Tax Act, 1961 ii. Whether on the facts and in the circumstances of the case, bad debts which had become irrecoverable for Rs.2,94,217/- in the year ITA 740/2004 Page 1 of 2 1996-97 was allowable as deduction under the provision of Section 36(1)(vii) of the Income Tax Act, 1961, particularly when the said amounts had already been booked and reflected as income in respect of earlier years to which they pertained. It is pointed out that in terms of the Explaination to Section 36 of the Income Tax Act, 1961 the Assessee as inserted with effect from 1st April, 1989 and as interpreted by the Supreme Court in Southern Technologies Ltd. v. CIT 2 SCC 548 and Vijaya Bank v. Commissioner of Income Tax 5 SCC 416 both the questions are required to be answered in the affirmative i.e. in the favour of the Revenue and against the Assessee. |