TRF Ltd. v. CIT

323 ITR 397Supreme Court of India2010#71 most cited

What is TRF Ltd. v. CIT authority for?

For claiming deduction for bad debts under section 36(1)(vii) of the Income Tax Act, it is sufficient for the assessee to write off the debt as irrecoverable in its accounts, and it is not necessary to prove that the debt has actually become irrecoverable.

714

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2010 to 2026.

Also referred to as

TRF Ltd. v. CIT · section 36(1)(vii) · bad debts · deduction · irrecoverable · written off · assessee's accounts · income tax act

Also reported as

190 Taxmann 391230 CTR 14190 Taxmann.com 391

Sections most often in play

Section 143(3)Section 36(1)(vii)Section 147Section 14ASection 36(2)Section 148Section 40(a)(ia)Section 132

Issues it is cited on

section 36(2)section 36(1)(vii)business expediencysection 36(1)section 36commercial expediencyrevenue expendituredisallowance under section 14acapital expendituresection 28section 115jsection 14a

Judgments citing TRF Ltd. v. CIT

The DCIT, Circle-1(3), Ahmedabad vs. Edelweiss Financial Advisors Ltd., ( Formerly Known Anagram Stock Broking Ltd., Ahmedabad

In the result, the appeal filed by the Revenue is dismissed

ITA 445/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad01 Dec 2020AY 2011-12

Bench: Shri Justice P.P. Bhatt, Hon’Ble & Shri Waseem Ahmed

For Respondent: Shri Dileep Kumar, Sr. DR
Section 143(3)Section 14ASection 32Section 36Section 36(2)Section 37Section 48Section 73

…'ble Ahmedabad ITAT in Appellant's own case for A.Y. 2008-09 (ITA No. 1531/Ahd/2011) wherein Hon'ble ITAT vide its order dated 6th November, 2015 has held as under: "5. The CIT(A) deletes this bad debts disallowance after quoting case law of TRF Ltd. Vs. CIT, 323 ITR 397 (SC) to the fact that it is not necessary to prove the same to have actually become bad as per the relevant law amended from 01.04.1989. The CIT(A) comes to latter aspect (supra). The assessee submitted in the lower appellate proceedings that it had already credited its brokerage income in profit and loss account thereby offering it for taxation.…

M/S. Edelweiss Broking Ltd. ( Amalgamating Company Edelweiss Financial Advisors Ltd.), Ahmedabad vs. The Jt. CIT, Range-3, Ahmedabad

In the result, the appeal filed by the Revenue is dismissed

ITA 318/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad01 Dec 2020AY 2011-12

Bench: Shri Justice P.P. Bhatt, Hon’Ble & Shri Waseem Ahmed

For Respondent: Shri Dileep Kumar, Sr. DR
Section 143(3)Section 14ASection 32Section 36Section 36(2)Section 37Section 48Section 73

…'ble Ahmedabad ITAT in Appellant's own case for A.Y. 2008-09 (ITA No. 1531/Ahd/2011) wherein Hon'ble ITAT vide its order dated 6th November, 2015 has held as under: "5. The CIT(A) deletes this bad debts disallowance after quoting case law of TRF Ltd. Vs. CIT, 323 ITR 397 (SC) to the fact that it is not necessary to prove the same to have actually become bad as per the relevant law amended from 01.04.1989. The CIT(A) comes to latter aspect (supra). The assessee submitted in the lower appellate proceedings that it had already credited its brokerage income in profit and loss account thereby offering it for taxation.…

M/S. Karnataka Quarries Pvt.Ltd., Mumbai vs. The Income Tax Officer Range 3(2)(1), Mumbai

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 1413/MUM/2009[2004-2005]Status: DisposedITAT Mumbai01 Dec 2020AY 2004-2005

Bench: The Hearing Of This Appeal.

For Appellant: Shri Dharmesh Shah, ARFor Respondent: Shri R. Bhoopathi, DR
Section 143(1)Section 143(2)Section 143(3)Section 28Section 36(1)(vii)

…ntries are made in the books of accounts, the claim has to be allowed. We find that the assessee has advanced the loan to its sister concerns and the loan is not recoverable and as per the decision of the Hon’ble Supreme Court in the case of TRF Ltd., Vs. CIT 323 ITR 397 (SC),the assessee has to establish that the debt has become bad and was written off. We find that the assessee could not substantiate the efforts made in respect of recovery of loan and further more in the case of sister concern, it will be easy for the assessee considering the advance Karnataka Quarries Pvt Ltd, Mumbai. given in the normal cours…

U.K. Paints India Ltd., New Delhi vs. ACIT, Central Circle- 8, New Delhi

In the result, the appeal of the assessee is allowed

ITA 7604/DEL/2017[2014-15]Status: DisposedITAT Delhi27 Nov 2020AY 2014-15

Bench: Sh. Amit Shukladr. B. R. R. Kumar(Through Video Conferencing) Ita No. 7604/Del/2017 : Asstt. Year : 2014-15 U.K. Paints India Ltd., Vs Acit, 19, Dda Commercial Complex, Central Circle-8, Kailash Colony Extn., Zamrudpur, New Delhi New Delhi-110048 (Appellant) (Respondent) Pan No. Aaacu0057C Assessee By : Sh. Pradeep Dinodia, Fca Revenue By : Sh. Ramesh Kumar, Sr. Dr Date Of Hearing: 18.11.2020 Date Of Pronouncement: 27.11.2020

For Appellant: Sh. Pradeep Dinodia, FCAFor Respondent: Sh. Ramesh Kumar, Sr. DR
Section 14ASection 14A(2)Section 28Section 36(2)Section 37

…lowable u/s 28 of the Income Tax Act, 1961. The ld. CIT (A) held that since the amount has not been offered to tax hither to, it cannot be considered for application of provision u/s 36(2)(ii). The judgment of the Hon’ble Supreme Court in the case of TRF Ltd. 323 ITR 397 found to be inapplicable by the ld. CIT (A). The ld. CIT (A) has also not allowed the loss as capital loss on the grounds that there has not been any existence of a capital asset. 8 U.K. Paints India Ltd. 15. During the hearing before us, the ld. AR argued mainly that if the amount is not allowable u/s 36(2)(ii), the same is still allowable u/s…

Commissoner of Income Tax vs. M/S Shaw Wallace

In the result, the appeal is dismissed

ITA/502/2013HC Karnataka09 Nov 2020

Bench: ALOK ARADHE,H.T. NARENDRA PRASAD

Section 260Section 36(1)(vii)

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF NOVEMBER 2020 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.502 OF 2013 BETWEEN: 1. COMMISSIONER OF INCOME TAX C.R. BUILDING, QUEENS ROAD BANGALORE-01. 2. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-2(3), ROOM No.555 ADYAKAR BHAVAN M.K. ROAD, MUMBAI-20. ... APPELLANTS (BY SRI. JEEVAN J. NEERALGI, & SRI. E.I. SANMATHI, ADVS.,) AND: M/S. SHAW WALLACE DISTILLERIES LTD., BANK OF BARODA BUILDING WALLCHAND HIRACHAND MARG BALLARD ESTATE, MUMBAI-400018.…

The Commissioner of Income Tax vs. M/S Ibm Global Services India Pvt Ltd

In the result, the appeal is disposed of

ITA/286/2010HC Karnataka03 Nov 2020

Bench: ALOK ARADHE,H.T. NARENDRA PRASAD

Section 10ASection 10A(2)Section 143(1)Section 143(2)Section 260Section 260ASection 80H

…s been placed on Circular dated 17.01.2013 issued under Section 10A read with Section 10AA and Section 10B of the Act by the Central Board of Direct Taxes (CBDT) as well as decision of Supreme Court in 'T.R.F. LTD. VS. COMMISSIONER OF INCOME-TAX', (2010) 323 ITR 397 (SC) and decisions of this court in 'COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE VS. FUSION SOFTWARE ENGG. (P.) LTD.', (2012) 18 TAXMANN.COM 57 (KARNTAKA), 'COMMISSIONER OF INCOME TAX, BANGALORE VS. 14 MILENNIA DEVELOPERS (P.) LTD.', (2018) 100 TAXMANN.COM 369 (KARNATAKA) and 'COMMISSIONER OF INCOME-TAX III VS. M/S QUINTILES RE…

The Commissioner of Income Tax vs. M/S Ibm India Pvt Ltd

In the result, the appeal is disposed of

ITA/392/2011HC Karnataka03 Nov 2020

Bench: ALOK ARADHE,H.T. NARENDRA PRASAD

Section 10ASection 260Section 260ASection 36(1)

…correct in holding that the assessee is entitle for write off of a sum of Rs.12,72,91,172/- as bad debts before the debt becoming bad merely on the write off of the assessee without following the law laid down by the Apex Court in the case of TRF Ltd., 323 ITR 397 4 and recorded a perverse finding? (v) Whether the tribunal was correct in allowing the write off as bad debt in the facts and circumstances of the present case, when invoices were raised few months prior to the write off of the debtors were reputed companies including Government undertakings and business was continued with the debto…

Joseph Davaraj Koilpillai, Bangalore vs. Income Tax Officer Ward-6(3)(4), Bangalore

In the result, the appeal by the assessee is allowed

ITA 3239/BANG/2018[2014-15]Status: DisposedITAT Bangalore09 Oct 2020AY 2014-15

Bench: Shri N V Vasudevan & Shri B R Baskaranassessment Year: 2014-15

For Appellant: Shri V. Srinivasan, AdvocateFor Respondent: Smt. R. Premi, Jt. CIT(DR)(ITAT), Bengaluru
Section 36(1)(vii)

…assessee as a condition for such an allowance. Before the amendment by the DTL (Amendment) Act 1987, of course, there was a condition to establish that the debt has become bad. 14. The Hon'ble Supreme Court in the case of T.R.F. Limited vs C.I.T reported in 323 ITR 397(SC) has clearly observed that after 01.04.1989, it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. It is enough if the bad debt is written off as irrecoverable in the accounts of the assessee. 15. The ld. DR placed reliance on the decision of Bangalore Bench of the Tribunal in the case of Embassy…

Mithi Software Technologies Private Limited, Pune vs. Income-Tax Officer, Ward - 11(1), Pune

In the result, the appeal of assessee is allowed

ITA 2571/PUN/2017[2008-09]Status: DisposedITAT Pune06 Oct 2020AY 2008-09

Bench: Shri R.S. Syal & Shri S.S. Viswanethra Ravi

For Appellant: Shri P.D. KudvaFor Respondent: Shri Achal Sharma
Section 36(2)

…e earlier year/current year and claimed as writing off of bad debts in the year under consideration, therefore, the claim of assessee as bad debts is to be allowed in terms of decision of Hon‟ble Supreme Court in the case of T.R.F. Limited Vs. CIT reported in 323 ITR 397 (SC). 6. The Hon‟ble Supreme Court in the case of T.R.F. Limited (supra) held that it is not necessary to establish that the debt, in fact, has become irrecoverable but would be sufficient if the bad debt is written off as 4 ITA No. 2571/PUN/2017, A.Y. 2008-09 irrecoverable in the accounts of the assessee. In the present case as discussed above…

DCIT 13(3)(2), Mumbai vs. M/S.Zicom Electronic Security System Limited, Mumbai

In the result, appeal of the revenue is dismissed

ITA 4218/MUM/2018[2014-15]Status: DisposedITAT Mumbai06 Oct 2020AY 2014-15

Bench: Shri Justice P P Bhatt & Shri M. Balaganesh, Am Dcit-13(3)(2) Vs. M/S. Zicom Electronic Room No.229, Security System Limited 2Nd Floor, Aayakar Bhavan 502, Silver Metropolis M.K.Road, Mumbai – 20 Western Express Highway Goregaon (E), Mumbai – 400 063 Pan/Gir No.Aaacz1444J (Appellant) .. (Respondent)

Section 138Section 143(3)Section 36(1)(vii)

…IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT), ‘G‘ BENCH MUMBAI BEFORE SHRI JUSTICE P P BHATT, PRESIDENT & SHRI M. BALAGANESH, AM DCIT-13(3)(2) Vs. M/s. Zicom Electronic Room No.229, Security System Limited 2nd Floor, Aayakar Bhavan 502, Silver Metropolis M.K.Road, Mumbai – 20 Western Express Highway Goregaon (E), Mumbai – 400 063 PAN/GIR No.AAACZ1444J (Appellant) .. (Respondent) Revenue by Shri V. Vinodkumar Assessee by None Date of Hearing 16/09/2020 Date of Pronouncement 06/10/2020 आदेश / O R D E R PER M. BALAGANESH (A.M): This appeal in ITA No.4218/Mum/2018 for A.Y.2014-15 arises out of the orde…

Vodafone India Limited, Mumbai vs. Principal Commissioner of Income Tax - 8, Mumbai

In the result, appeal of the assessee is allowed

ITA 3327/MUM/2018[2011-12]Status: DisposedITAT Mumbai28 Aug 2020AY 2011-12

Bench: Shri R.C. Sharma, Am & Shriramlal Negi, Jm Vodafone India Ltd., Principal Commissioner Of Income Peninsula Corporate Park, Tax-8, Vs. Ganpatrao Kadam Marg, Lower Room No. 611, Aayakar Bhavan, M.K. Parel, Mumbai-400013. Road, Mumbai, Maharastra, Pin- 400020. Pan: Aaach 5332 B Appellant) .. Respondent)

Section 143(3)Section 144C(13)Section 144C(5)Section 263Section 32(1)Section 35ASection 37

…s and in circumstance of the case and in law, the learned PCIT has erred in directing the learned AO to examine the customer-wise breakup of bad debts, thereby directly violating the principles enunciated by the Hon'ble Apex Court in the case of TRF Ltd v CIT 323 ITR 397 and Vijaya Bank v CIT (323 1TR 166), wherein it has been held that once the assessee has debited its profit and loss account and simultaneously reduced the amount from Sundry Debtors/loans and advances depicted in balance sheet at the close of the year, the assessee is entitled to deduction of such bad debts. All the above grounds are without pr…

The DCIT, Circle-1(1)(1), Ahmedabad vs. Arrow Digital Pvt. Ltd., Ahmedabad

In the result, appeal of the Revenue is dismissed

ITA 606/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad26 Aug 2020AY 2014-15

Bench: Shri Rajpal Yadav, Vice- & Shri Waseem Ahmed"नधा"रण वष"/ Asstt.Year: 2014-15 Dcit, Cir.1(1)(1) Arrow Digital Pvt. Ltd. Ahmedabad. 1005-06, “Aditya”, 10Th Floor Vs. Nr.Sardar Patel Sewa Samaj Mithakhali, Navangpura Ahmedabad 380 009. Pan : Aaeca 2215 J

For Respondent: Shri Dileep Kumar, Sr.DR
Section 143(2)Section 14ASection 36(2)(i)

…he assessee. The assessee in response to the query of the AO furnished party wise details and reasons for written off such bad debts in the books of accounts. The assessee also relied upon the decision of Hon’ble Supreme Court in the case of TRF Ltd. Vs. CIT, 323 ITR 397 (SC). It was submitted by the assessee that the conditions provided in section 36(2)(i)(a) of the Act were satisfied as the amount has been written in the books of accounts of the assessee. The ld.AO did not satisfy with the details and explanation filed by the assessee. He was of the view that since ledger accounts of the nine parties were runni…

DCIT, Circle-1(1), Kolkata vs. M/S. Landis+Gyr Limited, South 24 Parganas

In the result, the appeal of the Revenue is dismissed

ITA 2298/KOL/2017[2004-05]Status: DisposedITAT Kolkata28 Jul 2020AY 2004-05

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.2298/Kol/2017 ("नधा"रणवष" / Assessment Year:2004-05)

For Appellant: Smt. Ranu Biswas, Addl. CITFor Respondent: Shri Akash Patel, CA
Section 143(3)

…owable expenditure u/s.36(l)(vii) of the Income Tax Act, 1961.It is also to be said that the factual and legal matrix of the case of the appellant-company is well covered by the decision of the Hon'ble Supreme Court in the case-of T.R.F Ltd vs CIT reported in 323 ITR 397 where in it was held that after 1st April 1989, bad debt claimed by the assessee company will be allowed if such bad debt is written off as irrecoverable in the books of accounts of the company and it is not necessary for the assessee to establish that the debt in fact has become irrecoverably. As has been submitted by, the appellant, a similar v…

Futura Polysters Ltd, Mumbai vs. Income Tax Officer 6(3)(1), Mumbai

ITA 1460/MUM/2018[2013-14]Status: DisposedITAT Mumbai16 Jul 2020AY 2013-14

Bench: Shri Pramod Kumar & Shri Ravish Soodita Nos.1459-1460/Mum/2018 (Assessment Year: 2013-14) Futura Polyster Limited Ito 6(3)(1) B-22, T.V. Indl Estate, Aayakar Bhavan, Vs. S.K. Ahire Marg, Worli, M.K. Road, Churchgate, Mumbai – 400 030 Mumbai – 400 020 Pan – Aaaci3404K (Appellant) (Respondent) Appellant By: Shri Vijay Mehta & Shri Anuj Kisnadwala, A.R‘S Respondent By: Shri Debashis Chanda, D.R Date Of Hearing: 15.01.2020 Date Of Pronouncement: 16.07.2020

For Appellant: Shri Vijay Mehta &For Respondent: Shri Debashis Chanda, D.R
Section 143(3)Section 154Section 41(1)(a)Section 43BSection 68

…ITA Nos. 1459-1460/Mum/2018 A.Y. 2013-14 Futura Polyster Ltd. Vs ITO-6(3)(1) 1 IN THE INCOME TAX APPELLATE TRIBUNAL “F” Bench, Mumbai Before Shri Pramod Kumar, Vice President and Shri Ravish Sood, Judicial Member ITA Nos.1459-1460/Mum/2018 (Assessment Year: 2013-14) Futura Polyster Limited ITO 6(3)(1) B-22, T.V. INDL Estate, Aayakar Bhavan, Vs. S.K. Ahire Marg, Worli, M.K. Road, Churchgate, Mumbai – 400 030 Mumbai – 400 020 PAN – AAACI3404K (Appellant) (Respondent) Appellant by: Shri Vijay Mehta & Shri Anuj Kisnadwala, A.R‘s Respondent by: Shri Debashis Chanda, D.R Date of Hearing: 15.01.2020 Date of Pron…

Futura Polysters Ltd, Mumbai vs. Income Tax Officer 6(3)(1), Mumbai

ITA 1459/MUM/2018[2013-14]Status: DisposedITAT Mumbai16 Jul 2020AY 2013-14

Bench: Shri Pramod Kumar & Shri Ravish Soodita Nos.1459-1460/Mum/2018 (Assessment Year: 2013-14) Futura Polyster Limited Ito 6(3)(1) B-22, T.V. Indl Estate, Aayakar Bhavan, Vs. S.K. Ahire Marg, Worli, M.K. Road, Churchgate, Mumbai – 400 030 Mumbai – 400 020 Pan – Aaaci3404K (Appellant) (Respondent) Appellant By: Shri Vijay Mehta & Shri Anuj Kisnadwala, A.R‘S Respondent By: Shri Debashis Chanda, D.R Date Of Hearing: 15.01.2020 Date Of Pronouncement: 16.07.2020

For Appellant: Shri Vijay Mehta &For Respondent: Shri Debashis Chanda, D.R
Section 143(3)Section 154Section 41(1)(a)Section 43BSection 68

…ITA Nos. 1459-1460/Mum/2018 A.Y. 2013-14 Futura Polyster Ltd. Vs ITO-6(3)(1) 1 IN THE INCOME TAX APPELLATE TRIBUNAL “F” Bench, Mumbai Before Shri Pramod Kumar, Vice President and Shri Ravish Sood, Judicial Member ITA Nos.1459-1460/Mum/2018 (Assessment Year: 2013-14) Futura Polyster Limited ITO 6(3)(1) B-22, T.V. INDL Estate, Aayakar Bhavan, Vs. S.K. Ahire Marg, Worli, M.K. Road, Churchgate, Mumbai – 400 030 Mumbai – 400 020 PAN – AAACI3404K (Appellant) (Respondent) Appellant by: Shri Vijay Mehta & Shri Anuj Kisnadwala, A.R‘s Respondent by: Shri Debashis Chanda, D.R Date of Hearing: 15.01.2020 Date of Pron…

Firmenich Aromatics (India) P.Ltd, Mumbai vs. ACIT Cir 4(2), Mumbai

In the result this ground of appeal is allowed

ITA 348/MUM/2014[2009-10]Status: DisposedITAT Mumbai15 Jul 2020AY 2009-10

Bench: Shri Pawan Singh & Shri S. Rifaur Rahman(Virtual Hearing In Virtual Court No.2)

For Respondent: Shri Bomi Daruwala with
Section 143(3)Section 144Section 144C(13)Section 144C(5)Section 254(1)Section 92C

…. AR for the assessee submits that the details of the bad debts are filed on record and the same were filed before the lower authorities. In support of his submissions the ld AR for the assessee relied on the decision of Hon’ble Supreme Court in TRF Vs CIT (323 ITR 397 24 Firemenich Aromatics (India) Pvt Ltd, (AY 2009-10) ITA No. 348/Mum/2014 & 1732/Mum/2014 SC), CIT Vs Essar Technology Ltd [2015] 228 Taxman 309 (Bombay) and CBDT Circular dated 30.05.2016. 32. Per contra the ld. DR for the revenue supported the order of the lower authorities. 33. We have considered the rival submissions of the parties and ha…

M/S Hajee A.P.Bava & Company vs. The Assistant Commissioner of Income Tax

In the result, the appeal is

ITA/555/2018HC Karnataka19 Jun 2020

Bench: ALOK ARADHE,M.NAGAPRASANNA

Section 142(1)Section 143(1)Section 143(2)Section 260Section 260A

…esaid submissions, reference has been made only to decisions in cases hereinafter referred even though the compilation contains the list of as many as 36 judgments, viz., ‘VIJAYA BANK VS. CIT’, (2010) 323 ITR 166 (SC), ‘T.R.F. LTD. VS. CIT’, (2010) 323 ITR 397 (SC), ‘CIT VS. YOKOGAWA INDIA LTD.,’, (2012) 17 TAXMANN.COM 15 (KAR), ‘ CIT VS. KIRLOSKAR SYSTEMS LTD.,’, (2013) 220 TAXMAN 1 (KAR), ‘CIT 10 VS. VODAFONE ESSAR GUJARAT LTD.,’, (2017) 397 ITR 55 (GUJ), ‘CIT VS. TAINWALA CHEMICALS & PLASTICS INDIA LTD.,’, (2013) 215 TAXMAN 153 (BOM.), CIRCULAR NO.516 DATED 15.06.1988. 6. On the…

DCIT, Circle - 13(2), Kolkata vs. M/S. Shradha Agencies Private Limited, Howrah

In the result, the appeal of the revenue is dismissed

ITA 1362/KOL/2018[2013-14]Status: DisposedITAT Kolkata12 Jun 2020AY 2013-14

Bench: Shri S.S.Godara, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1362/Kol/2018 ("नधा"रणवष" / Assessment Year:2013-14)

For Appellant: Shri Dhrubajyoti Roy, JCITFor Respondent: Ankita Manek, ACA
Section 144Section 14ASection 194C(7)Section 36(1)Section 36(1)(va)Section 36(2)Section 40

…d debts. The A.O. in the assessment order has observed that the appellant company has debited written off an amount of Rs. 12,72,983/- on account of bad debts in their audited P&L a/c. As held by the Apex Court in the case of TRF Ltd vs CIT reported in (2010) 323 ITR 397 (SC) “This position in law is well- settled. After 1st April, 1989, it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. It is enough if the bad debt is written off as irrecoverable in the accounts of the assessee.” Therefore, as the appellant company has written off the bad debts in its account, the…

Oriental Carbon & Chemicals Ltd, Kolkata vs. Addl. CIT Range 10, Kolkata

Appeal is allowed and Revenue’s cross-appeal is dismissed in above terms

ITA 27/KOL/2017[2011-12]Status: DisposedITAT Kolkata12 Jun 2020AY 2011-12

Bench: Shri P.M. Jagtap, V.P & Shri S. S. Godara, Jm आयकर अपीलसं./I.T.A No.27/Kol/2017 ("नधा"रण वष" / Assessment Year: 2011-12) Oriental Carbon & Chemicals Vs. Acit, Range-10, Kolkata Ltd Duncan House 4Th Floor, 31, Netaji Subhas Road, Kol-1. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaaco3006F (Assessee) .. (Revenue/Department) आयकर अपीलसं./I.T.A No.251/Kol/2017 ("नधा"रण वष" / Assessment Year: 2011-12) Acit, Circle-10(2), Kolkata Vs. Oriental Carbon & Chemicals Ltd Duncan House 4Th Floor, 31, Netaji Subhas Road, Kol-1. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaaco3006F (Revenue/Department) .. ((Assessee) Appellant By : Shri U. H Rai, A/R Respondent By : Shri Dhrubajyoti Ray, Sr. Dr सुनवाईक"तार"ख/ Date Of Hearing : 21/02/2020 घोषणाक"तार"ख/Date Of Pronouncement : 12/06/2020 आदेश / O R D E R Per Shri S. S. Godara: These Assessee’S & Revenue’S Cross-Appeals For Assessment Year 2011-12 Arise Against The Commissioner Of Income Tax (A) - 15, Kolkata Dated 16.11.2016 Passed In Case No.403/Cit(A)-15/15-16/R-10/R&T/Kol Involving Proceedings U/S 143(3) Of The Income Tax Act, 1961; In Short ‘The Act’. Heard Both The Parties. Case File Perused.

For Appellant: Shri U. H Rai, A/RFor Respondent: Shri Dhrubajyoti Ray, Sr. DR
Section 143(3)Section 36

…iability sum in profit and loss a/c as a revenue item which was written off on I.T.A No.27/Kol/2017 I.T.A No.251/Kol/2017 Oriental Carbon & Chemicals Ltd Assessment Year: 2011-12 account of no changes of recovery as per the case law T.R.F. Ltd. vs. CIT [2010] 323 ITR 397 (SC) and in the light of section 36(1)(vii) r.w. sub-section (2) of the Act. Its Board of Directors only confirmed and ratified the impugned write off made in the relevant accounting period ending on 31.03.2011 vide its Resolution dated 27.05.2011. Meaning thereby that both the lower authorities have erred in observing that the impugned write off…

ACIT, Central Circle-10(2), Kolkata vs. M/S Oriental Carbon & Chemiclas Ltd., Kolkata

Appeal is allowed and Revenue’s cross-appeal is dismissed in above terms

ITA 251/KOL/2017[2011-2012]Status: DisposedITAT Kolkata12 Jun 2020AY 2011-2012

Bench: Shri P.M. Jagtap, V.P & Shri S. S. Godara, Jm आयकर अपीलसं./I.T.A No.27/Kol/2017 ("नधा"रण वष" / Assessment Year: 2011-12) Oriental Carbon & Chemicals Vs. Acit, Range-10, Kolkata Ltd Duncan House 4Th Floor, 31, Netaji Subhas Road, Kol-1. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaaco3006F (Assessee) .. (Revenue/Department) आयकर अपीलसं./I.T.A No.251/Kol/2017 ("नधा"रण वष" / Assessment Year: 2011-12) Acit, Circle-10(2), Kolkata Vs. Oriental Carbon & Chemicals Ltd Duncan House 4Th Floor, 31, Netaji Subhas Road, Kol-1. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaaco3006F (Revenue/Department) .. ((Assessee) Appellant By : Shri U. H Rai, A/R Respondent By : Shri Dhrubajyoti Ray, Sr. Dr सुनवाईक"तार"ख/ Date Of Hearing : 21/02/2020 घोषणाक"तार"ख/Date Of Pronouncement : 12/06/2020 आदेश / O R D E R Per Shri S. S. Godara: These Assessee’S & Revenue’S Cross-Appeals For Assessment Year 2011-12 Arise Against The Commissioner Of Income Tax (A) - 15, Kolkata Dated 16.11.2016 Passed In Case No.403/Cit(A)-15/15-16/R-10/R&T/Kol Involving Proceedings U/S 143(3) Of The Income Tax Act, 1961; In Short ‘The Act’. Heard Both The Parties. Case File Perused.

For Appellant: Shri U. H Rai, A/RFor Respondent: Shri Dhrubajyoti Ray, Sr. DR
Section 143(3)Section 36

…iability sum in profit and loss a/c as a revenue item which was written off on I.T.A No.27/Kol/2017 I.T.A No.251/Kol/2017 Oriental Carbon & Chemicals Ltd Assessment Year: 2011-12 account of no changes of recovery as per the case law T.R.F. Ltd. vs. CIT [2010] 323 ITR 397 (SC) and in the light of section 36(1)(vii) r.w. sub-section (2) of the Act. Its Board of Directors only confirmed and ratified the impugned write off made in the relevant accounting period ending on 31.03.2011 vide its Resolution dated 27.05.2011. Meaning thereby that both the lower authorities have erred in observing that the impugned write off…