TRF Ltd. v. CIT

M/S Gujarat Guardian Ltd., New Delhi vs. DCIT, New Delhi

Bench: Shri Prakash Chand Yadav & Shri Brajesh Kumar Singh

…etails of the parties to whom these debts pertain. 19. Ld. D.R. relied upon the orders of authorities below. Finding of the Bench: 20. After considering the rival submissions we observe that Hon'ble Supreme Court in the case of TRF Ltd. Vs. CIT reported in 323 ITR 397 has held that it is not necessary for an assessee to establish that the debt, in fact, has become irrecoverable. The Hon'ble Apex Court further held that if the assessee writes off these ITA Nos.4859/Del/2009; ITA Nos.157 to 159, 4791, 4856 & 5358/Del/2010 & ITA No.2539/Del/2017 Gujarat Guardian Ltd., New Delhi Page 12 of 66 debts in its books…

Gujarat Guardian Ltd., New Delhi vs. DCIT, New Delhi

Bench: Shri Prakash Chand Yadav & Shri Brajesh Kumar Singh

…e details of the parties to whom these debts pertain. 19. Ld. D.R. relied upon the orders of authorities below. Finding of the Bench: 20. After considering the rival submissions we observe that Hon'ble Supreme Court in the case of TRF Ltd. Vs. CIT reported in 323 ITR 397 has held that it is not necessary for an assessee to establish that the debt, in fact, has become irrecoverable. The Hon'ble Apex Court further held that if the assessee writes off these debts in its books of accounts as irrecoverable, then passing of these entries would be sufficient for allowing the claim of the assessee. We further observe tha…

Gujrat Guardian Ltd., New Delhi vs. DCIT, New Delhi

Bench: Shri Prakash Chand Yadav & Shri Brajesh Kumar Singhsl.No. Ita No. Filed By Assessee/Revenue Assessment Year Authority Passing The Order

…e details of the parties to whom these debts pertain. 19. Ld. D.R. relied upon the orders of authorities below. Finding of the Bench: 20. After considering the rival submissions we observe that Hon'ble Supreme Court in the case of TRF Ltd. Vs. CIT reported in 323 ITR 397 has held that it is not necessary for an assessee to establish that the debt, in fact, has become irrecoverable. The Hon'ble Apex Court further held that if the assessee writes off these ITA Nos.4859/Del/2009; ITA Nos.157 to 159, 4791,4856 &5358/Del/2010 & ITA No.2539/Del/2017 Gujarat Guardian Ltd., New Delhi Page 12 of 66 debts in its books of a…

ACIT, New Delhi vs. M/S Gujarat Guardian Ltd., New Delhi

Bench: Shri Prakash Chand Yadav & Shri Brajesh Kumar Singh

…etails of the parties to whom these debts pertain. 19. Ld. D.R. relied upon the orders of authorities below. Finding of the Bench: 20. After considering the rival submissions we observe that Hon'ble Supreme Court in the case of TRF Ltd. Vs. CIT reported in 323 ITR 397 has held that it is not necessary for an assessee to establish that the debt, in fact, has become irrecoverable. The Hon'ble Apex Court further held that if the assessee writes off these debts in its books of accounts as irrecoverable, then passing of these entries would be sufficient for allowing the claim of the assessee. We further observe tha…

Gujarat Guardian Ltd., New Delhi vs. DCIT, New Delhi

Bench: Shri Prakash Chand Yadav & Shri Brajesh Kumar Singh

…etails of the parties to whom these debts pertain. 19. Ld. D.R. relied upon the orders of authorities below. Finding of the Bench: 20. After considering the rival submissions we observe that Hon'ble Supreme Court in the case of TRF Ltd. Vs. CIT reported in 323 ITR 397 has held that it is not necessary for an assessee to establish that the debt, in fact, has become irrecoverable. The Hon'ble Apex Court further held that if the assessee writes off these debts in its books of accounts as irrecoverable, then passing of these entries would be sufficient for allowing the claim of the assessee. We further observe tha…

Gujarat Guardian Ltd., New Delhi vs. DCIT, New Delhi

Bench: Shri Prakash Chand Yadav & Shri Brajesh Kumar Singh

…etails of the parties to whom these debts pertain. 19. Ld. D.R. relied upon the orders of authorities below. Finding of the Bench: 20. After considering the rival submissions we observe that Hon'ble Supreme Court in the case of TRF Ltd. Vs. CIT reported in 323 ITR 397 has held that it is not necessary for an assessee to establish that the debt, in fact, has become irrecoverable. The Hon'ble Apex Court further held that if the assessee writes off these debts in its books of accounts as irrecoverable, then passing of these entries would be sufficient for allowing the claim of the assessee. We further observe tha…

DCIT, New Delhi vs. M/S. Gujrat Guardian Ltd., New Delhi

Bench: Shri Prakash Chand Yadav & Shri Brajesh Kumar Singh

…etails of the parties to whom these debts pertain. 19. Ld. D.R. relied upon the orders of authorities below. Finding of the Bench: 20. After considering the rival submissions we observe that Hon'ble Supreme Court in the case of TRF Ltd. Vs. CIT reported in 323 ITR 397 has held that it is not necessary for an assessee to establish that the debt, in fact, has become irrecoverable. The Hon'ble Apex Court further held that if the assessee writes off these debts in its books of accounts as irrecoverable, then passing of these entries would be sufficient for allowing the claim of the assessee. We further observe tha…

DCIT, New Delhi vs. M/S Gujrat Guardian Ltd., New Delhi

Bench: Shri Prakash Chand Yadav & Shri Brajesh Kumar Singh

…etails of the parties to whom these debts pertain. 19. Ld. D.R. relied upon the orders of authorities below. Finding of the Bench: 20. After considering the rival submissions we observe that Hon'ble Supreme Court in the case of TRF Ltd. Vs. CIT reported in 323 ITR 397 has held that it is not necessary for an assessee to establish that the debt, in fact, has become irrecoverable. The Hon'ble Apex Court further held that if the assessee writes off these debts in its books of accounts as irrecoverable, then passing of these entries would be sufficient for allowing the claim of the assessee. We further observe tha…

Ambey Laboratories Limited, Delhi vs. Assistant Commissioner of Income Tax, Delhi

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

Bench: Shri Vikas Awasthy & Shri S.Rifaur Rahmanambey Laboratories Limited, Vs. Acit, Circle 2(2), Ground Floor, Property No.555, Delhi. Tarla Mohalla Ghitorni, Delhi – 110 030. (Pan : Aaaca4317R) (Appellant) (Respondent) Assessee By : Ms. Apoorva Bhardwaj, Ca Revenue By : Shri Ashish Tripathi, Sr. Dr Date Of Hearing : 24.04.2025 Date Of Order : 27.06.2025 O R D E R Per S.Rifaur Rahman: 1. This Appeal Is Filed By The Assessee Against The Order Of Ld. Commissioner Of Income-Tax (Appeals)/National Faceless Appeal Centre (Nfac), Delhi [Hereinafter Referred To As ‘Ld. Cit (A)] Dated 31.01.2024 For Assessment Year 2017-18. 2. Brief Facts Of The Case Are, Assessee Filed Its Return Of Income On 04.11.2017 Declaring Loss Of Rs.15,30,39,,439/-. The Case Was Selected For Scrutiny Under Cass & Notices Under Section 143(2) & 142(1) Of The Income-Tax

…& Loss Account [PB No. 61-78, relevant at PB No. 77]. 3. Section 36(1 )(vii) of the Act provides that any bad debt written off in the books of account as irrecoverable is an allowable deduction. It has been settled by the Apex Court in TRF Ltd. v. CIT [2010] 323 ITR 397 that writing off of debt in the books of account is the only condition for claiming deduction of bad debt under section 36(1 )(vii) of the Act and it is not necessary for the assessee to establish that the debt become irrecoverable for allowance of deduction. "4. This position in law is well-settled. After 1-4-1989. it is not necessary for the as…

Ram Saran Dass & Sons vs. ITO Ward-35(5), Delhi

Appeal is partly allowed

Bench: Sh. Satbeer Singh Godaraita No. 883/Del/2025 : Asstt. Year : 2017-18 Ram Sarna Dass & Sons, Vs Income Tax Officer, C/O Ipso Legal, H-35, 1St Floor, Ward-35(5), Jangpura Extension, New Delhi-110002 New Delhi-110014 (Appellant) (Respondent) Pan No. Aalfr1104M Assessee By: Sh. Rajiv Saxena, Adv., Ms. Umangla Saxena, Adv. & Sh. Dishant Sethis, Adv. Revenue By : Sh. Manoj Kumar, Sr. Dr Date Of Hearing: 29.05.2025 Date Of Pronouncement: 29.05.2025 Order

…of page 89 in the assessee’s paper book makes it clear that it had indeed filed a list of all the concerned parties before the learned assessing authority in the course of assessment proceedings. That being the case, I hereby quote T.R.F. Ltd. vs. CIT (2010) 323 ITR 397 (SC) to hold that the impugned bad debts is not sustainable and the same is directed to be deleted. 8. Lastly comes section 40(b) disallowance of the assessee’s partners’ remuneration reading a sum of Rs.7,20,000/- made in both the lower proceedings. The Revenue vehemently argues that the assessee has all along not been able to above to prove as…