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 366,470 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

Mafatlal Finance Company Ltd ( Now Known As Hybrid Financial Services Ltd), Navi Mumbai vs. Asst CIT 9(2), Mumbai

In the result assesses appeal for A

ITA 7176/MUM/2010[2003-04]Status: DisposedITAT Mumbai26 Aug 2016AY 2003-04

Bench: Shri Jason P.Boaz (Am) & Shri Ram Lal Negi (Jm)

For Appellant: Shri. Nitesh JoshiFor Respondent: Shri. Neil Philip
Section 143(3)Section 14ASection 28Section 36(1)(vii)Section 37(1)

…o 2003-04 & ITA 5531/MUM/2013 Assessment Year: 2006-07 & ITA 7177/Mum/2010 Assessment Year: 2007-08 establish that the debt had become bad. The Ld. Counsel further submitted that in view of the ratio laid down by the Hon’ble Supreme Court in TRF Ltd. Vs. CIT 323 ITR 397, after 01/04/1989, it is not necessary for the assessee to establish that the debts has become irrecoverable. Deduction has to be allowed u/s 37(1)(vii) of the Act if the bad debts is written off as irrecoverable in the accounts of the assessee. Therefore, the Ld. CIT(A) has no jurisdiction to confirm the disallowance merely on the ground that th…

Mafatlal Finance Company Ltd ( Now Known As Hybrid Financial Services Ltd), Navi Mumbai vs. ITO 1(2)(1), Mumbai

In the result assesses appeal for A

ITA 7175/MUM/2010[2001-02]Status: DisposedITAT Mumbai26 Aug 2016AY 2001-02

Bench: Shri Jason P.Boaz (Am) & Shri Ram Lal Negi (Jm)

For Appellant: Shri. Nitesh JoshiFor Respondent: Shri. Neil Philip
Section 143(3)Section 14ASection 28Section 36(1)(vii)Section 37(1)

…o 2003-04 & ITA 5531/MUM/2013 Assessment Year: 2006-07 & ITA 7177/Mum/2010 Assessment Year: 2007-08 establish that the debt had become bad. The Ld. Counsel further submitted that in view of the ratio laid down by the Hon’ble Supreme Court in TRF Ltd. Vs. CIT 323 ITR 397, after 01/04/1989, it is not necessary for the assessee to establish that the debts has become irrecoverable. Deduction has to be allowed u/s 37(1)(vii) of the Act if the bad debts is written off as irrecoverable in the accounts of the assessee. Therefore, the Ld. CIT(A) has no jurisdiction to confirm the disallowance merely on the ground that th…

Mafatlal Finance Company Ltd ( Now Known As Hybrid Financial Services Ltd), Mumbai vs. ITO 1(2)(2), Mumbai

In the result assesses appeal for A

ITA 7174/MUM/2010[2000-01]Status: DisposedITAT Mumbai26 Aug 2016AY 2000-01

Bench: Shri Jason P.Boaz (Am) & Shri Ram Lal Negi (Jm)

For Appellant: Shri. Nitesh JoshiFor Respondent: Shri. Neil Philip
Section 143(3)Section 14ASection 28Section 36(1)(vii)Section 37(1)

…o 2003-04 & ITA 5531/MUM/2013 Assessment Year: 2006-07 & ITA 7177/Mum/2010 Assessment Year: 2007-08 establish that the debt had become bad. The Ld. Counsel further submitted that in view of the ratio laid down by the Hon’ble Supreme Court in TRF Ltd. Vs. CIT 323 ITR 397, after 01/04/1989, it is not necessary for the assessee to establish that the debts has become irrecoverable. Deduction has to be allowed u/s 37(1)(vii) of the Act if the bad debts is written off as irrecoverable in the accounts of the assessee. Therefore, the Ld. CIT(A) has no jurisdiction to confirm the disallowance merely on the ground that th…

DCIT, New Delhi vs. M/S. Swarovski India Pvt. Ltd., New Delhi

In the result the appeal filed by the revenue stands disposed off accordingly

ITA 100/DEL/2011[2003-04]Status: DisposedITAT Delhi26 Aug 2016AY 2003-04

Bench: Shri N. K. Saini & Smt. Beena A. Pillai

For Appellant: Shri Manoj Pandwani, CAFor Respondent: Shri N C Swain, CIT DR
Section 143Section 36Section 92C

…that as the individual account has not been written off and the assessee has not complied with the requirements for the deduction to be allowed under section 36 (1) (vii) of the Act. He submitted that Hon’ble Supreme Court in the case of TRF Ltd. reported in 323 ITR 397, has expressed the requirement of the individual account to be written off for the provision to be qualified for the deduction under section 36 (1) (vii) of the Act. He submitted that the decision of Hon’ble Supreme Court in the case of Vijaya bank Vs. CIT and Anr., (supra) has been passed before the decision in the case of TRF Ltd. He thus submi…

ITO, New Delhi vs. M/S. Ethik Enterprises Pvt. Ltd., New Delhi

In the result appeal is dismissed

ITA 1276/DEL/2014[2009-10]Status: DisposedITAT Delhi23 Aug 2016AY 2009-10

Bench: In The Income Tax Appellate Tribunal Delhi Bench ‘B’ New Delhi

For Appellant: Shri R.S. Singhvi, CAFor Respondent: Shri Anil Kumar Sharma, Sr. DR
Section 36

…e this issue before various courts/Tribunal may be withdrawn or not pressed upon. 7. In view of the facts of the present case, the CIT(A) deleted the addition made by the AO relying upon the decision of Hon’ble Supreme Court in the case of YRT Ltd. vs. CIT 323 ITR 397 (SC) and CIT vs. Morgan Securities and Credits Pvt. Ltd. 292 ITR 339 (Del) wherein it was held that under the amended provisions of the Act, the assessee is not required to establish that the debts has become bad and if the assessee has written off the debts in the books of accounts and has claimed deduction. Then the same should be allowed to h…

M/S Tally Solutions Pvt. Ltd., Bangalore vs. ACIT, Bangalore

In the result, the appeal of the assessee is partly allowed

ITA 1364/BANG/2011[2007-08]Status: DisposedITAT Bangalore19 Aug 2016AY 2007-08

Bench: Shri A.K. Garodia & Shri Vijay Pal Rao

For Appellant: Shri Arvind Sonde, Senior CounselFor Respondent: Smt. Neera Malhotra, CIT-II (D.R)
Section 143(3)Section 928Section 92C

…quirement of claim as deduction as well as complied with the terms of transfer agreement. He has further contended that the assessee shall not be required to prove that the debts have become non-recoverable as held by Hon'ble Supreme Court in the case of TRF 323 ITR 397. Thus in view of the settled principle laid down by the Hon'ble Supreme Court, the books of accounts is sufficient to claim the deduction under Section 36(1)(vii) of the Act. He has further submitted that in 39 IT(TP)A No.1364/Bang/2011 Tally Solutions Pvt. Ltd. the Slump Sale Agreement no specific mode for disbursement of consideration was spec…

ACIT Cir 4(2), Mumbai vs. Jbf Industries Ltd, Mumbai

In the result, the appeal of the revenue is partly allowed

ITA 5637/MUM/2013[2006-07]Status: DisposedITAT Mumbai12 Aug 2016AY 2006-07

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.2695/M/11 & I.T.A.No.6209/Mum/11 ("नधा"रण वष" / Assessment Year:, 2007-08 & 2008-09) M/S. Jbf Industries Limited बनाम/ Addl. Commissioner Of 8Th Floor, Express Tower, Income Tax 4(2) Vs. Nariman Point, Aayakar Bhavan, 6Th Floor Mumbai - 400021 Mumbai. आयकर अपील सं/ I.T.A. No.5637/Mum/13, I.T.A.2765/Mum/11

For Appellant: Dr. K. ShivaramFor Respondent: Shri Alok Johri (CIT-DR)
Section 143(1)Section 143(3)Section 271(1)(c)Section 40A(2)(b)

…in view of the delivery of spare parts given to M/s.Kirloskar Mcqay Pvt. Ltd. The Assessing Officer disallowed the said bad debts and allowed the business loss. The CIT(A) has allowed the bad debts by relying upon the law settled in T.R.F. Ltd. Vs. CIT [2010] 323 ITR 397 (SC). The Hon’ble Supreme Court observed that after the amendment to the section 36(1)(vii) of the Act w.e.f. 01.04.1989 the assessee had to establish, as a matter of fact, that the debt advanced by the assessee had, in fact, become irrecoverable or whether writing off the debts as irrecoverable in the accounts was sufficient. It was held that wr…

M/S. Hi- Tech Electrothermics & Hydropower Ltd., New Delhi vs. DCIT, New Delhi

In the result, appeal filed by the assessee stands allowed

ITA 6080/DEL/2013[2007-08]Status: DisposedITAT Delhi04 Aug 2016AY 2007-08

Bench: Shri S. V. Mehrotra & Smt. Beena A. Pillai

For Appellant: Shri V.K. Jian, CAFor Respondent: Shri A. K. Saroha, CIT, DR
Section 143(2)Section 250Section 41

…assessee has furnished the details of financial year in which write off of bad debts were taken into account in computation of income. The assessee has also placed reliance upon the decision of Hon'ble Supreme Court in the case of TRF Ltd. Vs CIT reported in 323 ITR 397. Respectfully following the ratio laid down in the decisions cited above, the disallowance made by the Ld. Assessing Officer stands deleted. This ground of appeal thus stands allowed. 8. Ground No.4: During the assessment proceedings, Ld. A.O. observed that the assessee has transferred an amount of Rs.22,90,00,000/- to the capital reserve account…

D.C.I.T Cir - 3, Kolkata vs. M/S Crescent Foundry Co Pvt Ltd, Kolkata

In the result the Cross Objection of the assessee is dismissed

ITA 973/KOL/2013[2003-04]Status: DisposedITAT Kolkata03 Aug 2016AY 2003-04

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am ]

For Appellant: Shri Pawan Kumar Kedia, FCAFor Respondent: Md.Ghyas Uddin, JCIT, Sr.DR
Section 143(3)Section 147Section 271(1)(c)Section 28Section 80H

…rt of the debt written off is bad and therefore it cannot be said that the debt itself has become bad. In our view this inference drawn by the AO is not correct and in the light of the decision of the Hon’ble Supreme Court in the case of T.R.F. Limited vs CIT 323 ITR 397 (SC) it is not necessary after the amendment to the law w.e.f. 01.04.1989 provision of section 36(1)(vii) of the Act that the assessee is no longer required to establish that the debt in question which is written off as bad has in fact become bad and irrecoverable. We find no grounds to interfere with the order of CIT(A). Consequently ground no.3…

Cheminova India Ltd, Mumbai vs. Asst CIT 10(1), Mumbai

In the result the appeal filed by the assessee is allowed

ITA 5282/MUM/2014[2007-08]Status: DisposedITAT Mumbai03 Aug 2016AY 2007-08

Bench: Shri B.R. Baskaran (Am)& Ramlal Negi (Jm)

Section 14ASection 36(1)(vii)

…cordingly disallowed the bad debts claim. The Ld A.R submitted that this fact, along with copy of relevant invoice, was furnished to Ld CIT(A), but the first appellate authority chose to confirm the addition. He further submitted that the decision of TRF Ltd (323 ITR 397) rendered by Hon’ble Supreme Court shall apply to the facts of the instant case. He further submitted that the Circular No.12 of 2016 issued by CBDT has also states that the writing off of debt is sufficient to claim deduction u/s 36(1)(vii) of the Act. 8. We have heard Ld D.R and perused the record. The assessee has submitted that there was ina…

ITO 6(1)(1), Mumbai vs. Aarey Drugs & Pharmaceuticals Ltd, Mumbai

In the result, appeal filed by the Revenue is treated as allowed for statistical purposes

ITA 8938/MUM/2010[1999-00]Status: DisposedITAT Mumbai03 Aug 2016AY 1999-00

Bench: Shri B.R. Baskaran (Am)& Shri Amit Shukla (Jm)

Section 36(1)(vii)Section 36(2)Section 40A(3)Section 68

…2,655/-. The Assessing Officer disallowed bad debts claim since the director of the assessee could not furnish details of bad debts. Learned CIT(A), however allowed the claim by following the decision rendered by Hon'ble Supreme Court in the case of TRF Ltd. (323 ITR 397), wherein the Hon'ble Supreme 3 Aarey Drugs & Pharmaceuticals Ltd. Court has stated that it is enough if bad debts is written off as irrecoverable in the accounts of the assessee. 7. Learned Departmental Representative submitted that the assessee has failed to furnish any details relating to bad debts claim and has also failed to show that the…

Larsen & Toubro Ltd, Mumbai vs. Addl CIT RG 3, Mumbai

Appeal of the AO is dismissed

ITA 4442/MUM/2010[1998-99]Status: DisposedITAT Mumbai27 Jul 2016AY 1998-99

Bench: S/Shri Joginder Singh & Rajendraआयकर आयकर अपील अपील संसंसंसं./Ita No./4442/Mum/2010 ,िनधा"रण िनधा"रण वष" वष" /Assessment Years: 1998-99 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" M/S. Larsen & Toubro Ltd. Dcit - Range 2(2) Room No. 577, 5Th Floor L&T House, N.M. Marg Vs. Ballard Estate, Mumbai-400001 Aayakar Bhavan, M.K. Road Pan: Aaacl0140P Mumbai-400020 आयकर आयकर आयकर अपील आयकर अपील अपील संसंसंसं./Ita No./4599/Mum/2013 ,िनधा"रण अपील िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Years: 1998-99 वष" Dcit - Range 2(2) M/S. Larsen & Toubro Ltd. Vs. Mumbai-400020 Ballard Estate, Mumbai-400001 (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By: Shri Mukund Chate Assessee By: Shri J.D. Mistry सुनवाई क" तारीख / Date Of Hearing: 24.06.2016 घोषणा क" तारीख / Date Of Pronouncement: 27.07.2016 आयकर आयकर अिधिनयम आयकर आयकर अिधिनयम अिधिनयम,1961 क" अिधिनयम क" क" धारा क" धारा धारा 254(1)केकेकेके अ"तग"त धारा अ"तग"त अ"तग"त आदेश अ"तग"त आदेश आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद"य सद"य राजे"" राजे"" केकेकेके अनुसार अनुसार Per Rajendra A.M.- लेखा लेखा लेखा सद"य सद"य राजे"" राजे"" अनुसार अनुसार Challenging The Order Dt.26.03.20130Of The Cit(A)-5,Mumbai The Assessing Officer(Ao) & The Assessee Have Filed Cross-Appeals For The Year Under Consideration.Assessee-Company, Engaged In The Business Of Construction, Manufacturing Of Heavy Machinery & Cement, Etc., Filed It Return Of Income On,27.11.1998,Declaring Income Of Rs.37.20 Crores.The Ao Complet -Ed The Assessment,On 28.02.2001, Under Section 143(3) Of The Act, Determining The Income Of The Assessee At Rs.2,09,15,37,490/-.

For Appellant: Shri J.D. MistryFor Respondent: Shri Mukund Chate
Section 143(3)Section 254(1)Section 40A(9)

…आयकर आयकर अपीलीय आयकर आयकर अपीलीय अपीलीय अिधकरण अपीलीय अिधकरण अिधकरण," ए” खंडपीठ अिधकरण खंडपीठ खंडपीठ मुंबई खंडपीठ मुंबई मुंबई मुंबई INCOME TAX APPELLATE TRIBUNAL,MUMBAI-“A”,BENCH सव"ी जोिग"दर "सह, "याियक सद"य एवं राजे"", लेखा सद"य Before S/Shri Joginder Singh,Judicial Member & Rajendra,Accountant Member आयकर आयकर अपील अपील संसंसंसं./ITA No./4442/Mum/2010 ,िनधा"रण िनधा"रण वष" वष" /Assessment Years: 1998-99 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" M/s. Larsen & Toubro Ltd. DCIT - Range 2(2) Room No. 577, 5th Floor L&T House, N.M. Marg Vs. Ballard Estate, Mumbai-400001 Aayakar Bhavan, M.K. Road PAN: AAACL014…

Vijaya Bank, Bangalore vs. Addl..C.I.T., Bangalore

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

ITA 331/BANG/2014[2009-10]Status: DisposedITAT Bangalore22 Jul 2016AY 2009-10

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Raojoint Commissioner Of Income-Tax, Ltu, Bangalore. … Appellant Vs. M/S. Vijaya Bank, Head Office, Central Accounts Dept. 41/2, Mg Road, Bangalre-560001. … Respondent Pa No.Aaacv 4791 J & M/S. Vijaya Bank, Ho, Central Accounts Dept. 41/2, M.G.Road, Bangalore. … Appellant Vs. Addl. Commissioner Of Income-Tax, Ltu, Bangalore. … Respondent Revenue By : Shri P.Chandrashekar, Cit(Dr) Assessee By : Shri S.Ananthan, Ca & Smt.Lalitha Ramaswamy, Ca Date Of Hearing : 07/06/2016 Date Of Pronouncement : 22/07/2016 O R D E R Per Inturi Rama Rao, Am : These Are Cross Appeals Filed By The Assessee-Bank As Well As The Revenue Directed Against The Order Of The Cit(A), Ltu, Bangalore, Dated 28/11/2013 For The Assessment Year 2009-10. Ita Nos.318 & 331/Bang/2014 Page 2 Of 25 2. Briefly, Facts Of The Case Are That The Assessee Is A Nationalized Bank Engaged In The Business Of Banking. It Filed Return Of Income For The Assessment Year 2009-10 On 29/9/2009 Declaring A Total Income Of Rs.540,24,85,305/-. Against The Said Return Of Income, Assessment Was Completed By The Addl. Cit (Ltu), Bangalore, U/S 143(3) Of The Income-Tax Act, 1961 [Hereinafter Referred To As 'The Act' For Short] Vide Order Dated 30/08/2011 At A Total Income Of Rs.1205,99,81,409/-. While Doing So, The Ao Made The Following Disallowances:

For Appellant: Shri S.Ananthan, CA and Smt.Lalitha Ramaswamy, CAFor Respondent: Shri P.Chandrashekar, CIT(DR)
Section 115JSection 143(3)Section 14ASection 36(1)(vii)Section 36(1)(viia)

…36(1)(vii) it is enough if the debts are written off in the books of account and it is not necessary to establish that debts have become really bad. In this connection, he relied on the decision of the Hon’ble Supreme Court in the case of T.R.F. Ltd. vs. CIT (323 ITR 397). As regards write off of debt, he submitted that debit in P&L account and reducing the provision for bad debts from sundry debtors in the balance sheet amounts to write off as held by the Hon’ble Supreme Court in the case of Vijaya Bank vs. CIT (323 ITR 166). 9.2 We heard rival submissions and perused the material on record. The only ground on…

JCIT, Bangalore vs. M/S Vijaya Bank, Bangalore

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

ITA 318/BANG/2014[2009-10]Status: DisposedITAT Bangalore22 Jul 2016AY 2009-10

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Raojoint Commissioner Of Income-Tax, Ltu, Bangalore. … Appellant Vs. M/S. Vijaya Bank, Head Office, Central Accounts Dept. 41/2, Mg Road, Bangalre-560001. … Respondent Pa No.Aaacv 4791 J & M/S. Vijaya Bank, Ho, Central Accounts Dept. 41/2, M.G.Road, Bangalore. … Appellant Vs. Addl. Commissioner Of Income-Tax, Ltu, Bangalore. … Respondent Revenue By : Shri P.Chandrashekar, Cit(Dr) Assessee By : Shri S.Ananthan, Ca & Smt.Lalitha Ramaswamy, Ca Date Of Hearing : 07/06/2016 Date Of Pronouncement : 22/07/2016 O R D E R Per Inturi Rama Rao, Am : These Are Cross Appeals Filed By The Assessee-Bank As Well As The Revenue Directed Against The Order Of The Cit(A), Ltu, Bangalore, Dated 28/11/2013 For The Assessment Year 2009-10. Ita Nos.318 & 331/Bang/2014 Page 2 Of 25 2. Briefly, Facts Of The Case Are That The Assessee Is A Nationalized Bank Engaged In The Business Of Banking. It Filed Return Of Income For The Assessment Year 2009-10 On 29/9/2009 Declaring A Total Income Of Rs.540,24,85,305/-. Against The Said Return Of Income, Assessment Was Completed By The Addl. Cit (Ltu), Bangalore, U/S 143(3) Of The Income-Tax Act, 1961 [Hereinafter Referred To As 'The Act' For Short] Vide Order Dated 30/08/2011 At A Total Income Of Rs.1205,99,81,409/-. While Doing So, The Ao Made The Following Disallowances:

For Appellant: Shri S.Ananthan, CA and Smt.Lalitha Ramaswamy, CAFor Respondent: Shri P.Chandrashekar, CIT(DR)
Section 115JSection 143(3)Section 14ASection 36(1)(vii)Section 36(1)(viia)

…36(1)(vii) it is enough if the debts are written off in the books of account and it is not necessary to establish that debts have become really bad. In this connection, he relied on the decision of the Hon’ble Supreme Court in the case of T.R.F. Ltd. vs. CIT (323 ITR 397). As regards write off of debt, he submitted that debit in P&L account and reducing the provision for bad debts from sundry debtors in the balance sheet amounts to write off as held by the Hon’ble Supreme Court in the case of Vijaya Bank vs. CIT (323 ITR 166). 9.2 We heard rival submissions and perused the material on record. The only ground on…

Price Waterhouse Coppers Private Limited, Kolkata vs. Addl C.I.T RG - 2, Kolkata

In the result, to sum up, the appeals of the revenue in ITA No

ITA 2033/KOL/2013[2003-04]Status: DisposedITAT Kolkata13 Jul 2016AY 2003-04

Bench: Shri M. Balaganesh, Am & Shri S. S. Viswanethra Ravi, Jm]

For Appellant: Shri K. M. Gupta, ARFor Respondent: Shri A. K. Pandey, JCIT, Sr. DR
Section 143(3)

…copy of the CBDT Circular No. 12/2016 dated 30.5.2016 wherein the CBDT had directed the revenue to even withdraw the ground of disallowance of bad debts as the issue is well settled by the decision of the Hon’ble Apex Court in the case of TRF Ltd reported in 323 ITR 397 (SC). 9.4. We have heard the rival submissions. We find that the revenue had not disputed the fact that the debts were offered to tax as income in the earlier years and some portion of the same debts were treated as irrecoverable and were written off in the books of accounts of the assessee. We find that the issue is squarely covered by the deci…

D.C.I.T, Cir-2, Kolkata vs. M/S Price Water House Coopers Pvt., Kolkata

In the result, to sum up, the appeals of the revenue in ITA No

ITA 1523/KOL/2013[2005-2006]Status: DisposedITAT Kolkata13 Jul 2016AY 2005-2006

Bench: Shri M. Balaganesh, Am & Shri S. S. Viswanethra Ravi, Jm]

For Appellant: Shri K. M. Gupta, ARFor Respondent: Shri A. K. Pandey, JCIT, Sr. DR
Section 143(3)

…copy of the CBDT Circular No. 12/2016 dated 30.5.2016 wherein the CBDT had directed the revenue to even withdraw the ground of disallowance of bad debts as the issue is well settled by the decision of the Hon’ble Apex Court in the case of TRF Ltd reported in 323 ITR 397 (SC). 9.4. We have heard the rival submissions. We find that the revenue had not disputed the fact that the debts were offered to tax as income in the earlier years and some portion of the same debts were treated as irrecoverable and were written off in the books of accounts of the assessee. We find that the issue is squarely covered by the deci…

D.C.I.T, Cir-2, Kolkata vs. M/S Pricewaterhouse Coopers Pvt, Kolkata

In the result, to sum up, the appeals of the revenue in ITA No

ITA 1521/KOL/2013[2003-2004]Status: DisposedITAT Kolkata13 Jul 2016AY 2003-2004

Bench: Shri M. Balaganesh, Am & Shri S. S. Viswanethra Ravi, Jm]

For Appellant: Shri K. M. Gupta, ARFor Respondent: Shri A. K. Pandey, JCIT, Sr. DR
Section 143(3)

…copy of the CBDT Circular No. 12/2016 dated 30.5.2016 wherein the CBDT had directed the revenue to even withdraw the ground of disallowance of bad debts as the issue is well settled by the decision of the Hon’ble Apex Court in the case of TRF Ltd reported in 323 ITR 397 (SC). 9.4. We have heard the rival submissions. We find that the revenue had not disputed the fact that the debts were offered to tax as income in the earlier years and some portion of the same debts were treated as irrecoverable and were written off in the books of accounts of the assessee. We find that the issue is squarely covered by the deci…

Hewitt Associates (India) Pvt. Ltd.., Gurgaon vs. DCIT, New Delhi

The appeal of the assessee is allowed

ITA 989/DEL/2013[2003-04]Status: DisposedITAT Delhi08 Jul 2016AY 2003-04

Bench: Shri N.K. Saini & Shri Sudhanshu Srivastava

Section 143(3)Section 271(1)Section 271(1)(c)

…recoverable, and the details of the balances not being provided/debts not being identifiable. The Ld. AR submitted that as regards the first limb is of the disallowance, reliance is placed on the decision of the Apex Court in the case of TRF Ltd. v CIT(2010) 323 ITR 397( SC) where it has been conclusively held that for the purposes of Section 36(1)(vii)/36(2) it is not necessary for the assesse to establish that debt, in fact, has become irrecoverable, it is enough if bad debts is written off in the books of account. This view has been followed thereafter. As regards the second limb i.e. the details and ident…

South India Surgicals Co. Ltd., Chennai vs. ACIT, Chennai

In the result, the appeal of the assessee is partly allowed

ITA 3088/CHNY/2014[2010-11]Status: DisposedITAT Chennai01 Jul 2016AY 2010-11

Bench: Shri A.Mohan Alankamony & Shri. G. Pavan Kumar

For Appellant: Shri. A.S. Sriraman, AdvocateFor Respondent: Dr. B. Nischal, IRS, JCIT
Section 143(1)Section 143(2)Section 143(3)Section 36(1)(vii)

…आयकर अपील"य अ"धकरण, ’डी’ "यायपीठ, चे"नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI "ी ए. मोहन अलंकामणी , लेखा सद"य एवं "ी जी. पवन कुमार, "या"यक सद"य के सम" BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI. G. PAVAN KUMAR, JUDICIAL MEMBER आयकर अपील सं./I.T.A. No. 3088/Mds/2014 "नधा"रण वष" /Assessment year : 2010-2011. M/s. South India Surgicals Vs. The Assistant Commissioner Co. Ltd, of Income Tax, New No.117, Old No.65, Company Circle VI(3) Wallajah Road, Chennai. Anna Salai, Chennai 600 002. [PAN AAACS 5091E ] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant by : Shr…

Aditya Chharia, Kolkata vs. I.T.O WD - 42(2), Kolkata

In the result, assessee’s appeal stands allowed

ITA 2293/KOL/2013[2006-07]Status: DisposedITAT Kolkata30 Jun 2016AY 2006-07

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Year:2006-07

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

…laim of bad debts on the ground that the assessee fulfilled the conditions of section 36(10(vii) r.w.s 36(2) of the Act. We find this issue has now been decided in favour of the assessee by the decision of Hon'ble Supreme Court in the case of TRF Ltd. Vs. CIT 323 ITR 397 whrein it has been held that after the amendment of section 36(1)(vii) of the IT Act, 1961 w.e.f. April 1, 1989, in order to obtain a deduction in relation to bad debts, it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. Since the assessee has written off the amount of bad debts in the books of acc…