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 367,154 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

Goldiam Jewellery Limited, Mumbai vs. ACIT-CC 1(2), Mumbai

In the result the appeal filed by the assessee stands partly allowed with no order as to cost

ITA 3272/MUM/2023[2018-19]Status: DisposedITAT Mumbai27 Nov 2024AY 2018-19

Bench: Shri Sandeep Gosain & Ms Padmavathy Svs. Acit – Cc 1(2) Goldiam Jewellery Ltd Mumbai. G-10, Ground Floor, Gems & Jewellery Complex Ii, Seeps Sez, Andheri East, Mumbai – 400096. Pan/Gir No. Aaccg3424F (Applicant) (Respondent)

Section 147Section 148Section 250Section 36(1)(va)

…IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER & MS PADMAVATHY S, ACCOUNTANT MEMBER Vs. ACIT – CC 1(2) Goldiam Jewellery Ltd Mumbai. G-10, Ground Floor, Gems and Jewellery Complex II, Seeps Sez, Andheri East, Mumbai – 400096. PAN/GIR No. AACCG3424F (Applicant) (Respondent) Assessee by Shri Prateek Jian Revenue by Shri Nagnath Bimrao Pasale सुनवाई क" तारीख/Date of Hearing 14.11.2024 घोषणा क" तारीख/Date of Pronouncement 27.11.2024 आदेश / ORDER PER SANDEEP GOSAIN, JM: The present appeal has been filed by the assessee challenging the impugned order 19.07.2023, pass…

M/S. Cadila Pharmaceuticals Ltd., Ahmedabad vs. The Dy.Commissioner of Income Tax, Circle-1(1)(2), Ahmedabad

In the result, appeal of the Revenue is partly allowed for statistical purpose and the appeal of the assessee is partly allowed

ITA 383/AHD/2020[2012-13]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2012-13

Bench: Ms. Suchitra Kamble & Shri Makarand Vasant Mahadeokarassessment Year: 2012-13

Section 115JSection 144Section 2Section 35Section 36(1)(iii)Section 36(1)(vii)Section 37Section 43BSection 80I

…the bad debts were actually written off in this very year and entry of these bad debts were explained to the Assessing Officer at the time of assessment proceedings. The Ld. AR relied upon the order of the Hon’ble Apex Court in the case of TRF Limited vs CIT, 323 ITR 397. 35. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the bad debts were written off in the present assessment year itself and from the perusal of financials of the assessee especially indicated in Note 25 of Profit and Loss account. Thus, the Assessing Officer was not right in…

The Dy.Commissioner of Income Tax, Circle-1(1)(2), Ahmedabad vs. M/S. Cadila Pharmaceuticals Ltd., Ahmedabad

In the result, appeal of the Revenue is partly allowed for statistical purpose and the appeal of the assessee is partly allowed

ITA 345/AHD/2020[2012-13]Status: DisposedITAT Ahmedabad12 Nov 2024AY 2012-13

Bench: Ms. Suchitra Kamble & Shri Makarand Vasant Mahadeokarassessment Year: 2012-13

Section 115JSection 144Section 2Section 35Section 36(1)(iii)Section 36(1)(vii)Section 37Section 43BSection 80I

…the bad debts were actually written off in this very year and entry of these bad debts were explained to the Assessing Officer at the time of assessment proceedings. The Ld. AR relied upon the order of the Hon’ble Apex Court in the case of TRF Limited vs CIT, 323 ITR 397. 35. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the bad debts were written off in the present assessment year itself and from the perusal of financials of the assessee especially indicated in Note 25 of Profit and Loss account. Thus, the Assessing Officer was not right in…

Aptiv Connection Systems India Private Limited, Kochi, Kerala vs. Deputy Commissioner of Income-Tax, Corporate Circle 1(1), Ernakulam, Kerala

ITA 749/COCH/2023[2010-11]Status: DisposedITAT Cochin23 Oct 2024AY 2010-11

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Smt. V. Swarnalatha, Sr. D.R
Section 10ASection 143(3)Section 147Section 148

…comes assessee’s 4th substantive ground that both the lower authorities 11. have erred in law and on facts making section 36(vii) disallowance of bad debts despite the fact that the same had been duly written off in its books going by TRF Ltd., vs. CIT [2010] 323 ITR 397 (SC) and therefore, it’s impugned claim deserves to be accepted. 12. The Revenue on the other hand, submits that it was assessee’s risk and responsibility only to prove the said writing down in it books before the lower authorities. Aptiv Connection Systems India P. Ltd. 13. Faced with this situation, we deem it appropriate the assessee’s groun…

Aptiv Connection Systems India Private Limited, Kochi, Kerala vs. Assistant Commissioner of Income Tax, Corporate Circle 1(1), Kochi, Kerala

ITA 736/COCH/2023[2014-15]Status: DisposedITAT Cochin23 Oct 2024AY 2014-15

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Smt. V. Swarnalatha, Sr. D.R
Section 10ASection 143(3)Section 147Section 148

…comes assessee’s 4th substantive ground that both the lower authorities 11. have erred in law and on facts making section 36(vii) disallowance of bad debts despite the fact that the same had been duly written off in its books going by TRF Ltd., vs. CIT [2010] 323 ITR 397 (SC) and therefore, it’s impugned claim deserves to be accepted. 12. The Revenue on the other hand, submits that it was assessee’s risk and responsibility only to prove the said writing down in it books before the lower authorities. Aptiv Connection Systems India P. Ltd. 13. Faced with this situation, we deem it appropriate the assessee’s groun…

Aptiv Connection Systems India Private Limited, Kochi, Kerala vs. Assistant Commissioner of Income-Tax, Corporate Circle 1(1), Kochi, Ernakulam, Kerala

ITA 735/COCH/2023[2009-10]Status: DisposedITAT Cochin23 Oct 2024AY 2009-10

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Smt. V. Swarnalatha, Sr. D.R
Section 10ASection 143(3)Section 147Section 148

…comes assessee’s 4th substantive ground that both the lower authorities 11. have erred in law and on facts making section 36(vii) disallowance of bad debts despite the fact that the same had been duly written off in its books going by TRF Ltd., vs. CIT [2010] 323 ITR 397 (SC) and therefore, it’s impugned claim deserves to be accepted. 12. The Revenue on the other hand, submits that it was assessee’s risk and responsibility only to prove the said writing down in it books before the lower authorities. Aptiv Connection Systems India P. Ltd. 13. Faced with this situation, we deem it appropriate the assessee’s groun…

Heylands Exports Pvt. Ltd., Chennai vs. ACIT, National E-Assessment Centre, Delhi

In the result, appeal filed by the assessee is allowed

ITA 1539/CHNY/2024[2018-19]Status: DisposedITAT Chennai23 Oct 2024AY 2018-19

Bench: Shri Aby T. Varkey & Shri Manoj Kumar Aggarwal

For Respondent: 21.08.2024
Section 142(1)Section 143(3)Section 144BSection 263Section 36(1)(va)

…s given (supra) tallied with the information given at Page Nos.34 & 27 of the Paper Book. Thus, after enquiry as noted (supra), the AO has accepted the genuineness of the claim. The Hon'ble Supreme Court in the case of T.R.F. Ltd. vs. CIT reported in [2010] 323 ITR 397 (SC) has held that after 01.04.1989, it is not necessary for the assessee to establish that the bad debts in fact has become as irrecoverable. It is enough if the bad debts are written off as irrecoverable in the accounts/hands of the assessee. In light of the enquiry conducted by the AO and position of law M/s.Heylands Exports Pvt. Ltd. :: 7 ::…

The Louis Berger Group Inc, Gugaon vs. Assistant Commissioner of Incomne Tax, International Taxation, Gurgaon

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

ITA 2630/DEL/2023[2020-21]Status: DisposedITAT Delhi15 Oct 2024AY 2020-21

Bench: Shri Saktijit Dey, Hon’Ble & Shri M. Balaganeshthe Louis Berger Group Inc, Vs. Acit, Plot No. 3, Surinder Jakhir Dcit/Acit, International Bhawan, Sector-32, Gurgaon Taxation, Gurgaon (Appellant) (Respondent) Pan:Aaacl4067F

For Appellant: Shri Deepak Chopra, AdvFor Respondent: Shri Vijay B. Vazanta, CIT DR
Section 36(1)(vii)Section 36(2)

…t in order to claim deduction on account of bad debt written off pursuant to the amendment made u/s 36(1)(vii) of the Act after 01.04.1989. This issue is no longer res integra in view of the decision of Hon'ble Supreme Court in the case of TRF Ltd reported in 323 ITR 397 (SC) , wherein, it was held as under:- “4. This position in law is well-settled. After 1-4-1989, 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. However, in the present case, the Assessing Officer has…

Ishan Equipments Private Limited, Vadodara vs. Deputy Commissioner of Income Tax, Circle 1(1)(1), Vadodara, Chakli Circle

In the result, the appeal filed by the assessee is allowed

ITA 235/AHD/2024[2018-19]Status: DisposedITAT Ahmedabad10 Oct 2024AY 2018-19

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita No.235/Ahd/2024 िनधा"रण वष" /Assessment Year : 2018-19 Ishan Equipments Pvt.Ltd. The Dy.Cit बनाम/ Survey No.144-15, Nh No.8 Circle-1(1)(1) V/S. Sankharda Vadodara Nr. Police Chowki Vadodara – 391 350 (Gujarat) "थायी लेखा सं./Pan: Aaaci 4131 R (अपीलाथ&/ Appellant) ('( यथ&/ Respondent) Assessee By : Shri S.N. Divetia & Shri Samir Vora, Ars Revenue By : Shri Rignesh Das, Sr.Dr सुनवाई की तारीख/Date Of Hearing : 26/09/2024 घोषणा की तारीख /Date Of Pronouncement: 10/10/2024 आदेश/O R D E R Per Makarand V. Mahadeokar, Am:

For Appellant: Shri S.N. Divetia &For Respondent: Shri Rignesh Das, Sr.DR
Section 143(3)Section 36Section 36(1)(vii)Section 37Section 43B

…counts during F.Y. 2017-18 after settlement agreements were reached with both parties. The AR further stated that these amounts were offered to income by way of sale in the earlier years. The AR cited the Hon’ble Supreme Court’s judgement in TRF Ltd. vs. CIT (323 ITR 397), wherein it was held that it is sufficient if the bad debts are written off in the books, and there is no need to establish that the debt is irrecoverable. The AR argued that all the conditions under Section 36(1)(vii) of the Act were satisfied, and therefore the disallowance was unjustified. 5. The Departmental Representative (DR) relied on th…

Assistant Commissioner of Income Tax Central Circle 6 4 Mumbai, Mumbai vs. Indiabulls Housing Finance Limited, New Delhi

In the result the revenue’s appeal is dismissed

ITA 1536/MUM/2024[2021-22]Status: DisposedITAT Mumbai09 Oct 2024AY 2021-22

Bench: SHRI BR BASKARAN (Accountant Member), SHRI SUNIL KUMAR SINGH (Judicial Member)

Section 143(1)Section 143(2)Section 14ASection 14A(1)Section 250Section 37

…en deleted by learned CIT(A). Learned representative for the AR has referred (i) Mangal Keshav Security Ltd. v ACIT 4(3), Mumbai [2017]85 taxmann.com 226(Mumbai-Trib), wherein the co-ordinate bench of this Tribunal with reference to TRF Ltd. V CIT [2010] (SC) 323 ITR 397/190 taxmann.com 391 held that the penalty levied by stock exchange on stock broker for failure to maintain KYC form etc. being compensatory in nature was allowable as deduction u/s. 37(1). Learned AR has further referred (ii) EON Hadapsar, Infrastructure (P) Ltd. V ACIT. 8 Indiabulls Housing Finance Limited Central circle-2(1), Pune, [2016] 71 t…

M/S. Vaasautomation Private Limited, Kanchipurm vs. ACIT, Coprporate Circle-3(2), Chennai

In the result, all the grounds of appeal raised by the assesse are dismissed

ITA 140/CHNY/2024[2015-16]Status: DisposedITAT Chennai31 Jul 2024AY 2015-16

Bench: Shri Aby T Varkey & Shri Amitabh Shuklaआयकर अपील सं./Ita No.140/Chny/2024 निर्धारण वर्ा /Assessment Years: - 2015-16 M/S.Vaasautomation India Pvt Ltd., The Asst.Commissioner Of Income Plot No.H18 & H19, Sipcot Industrial Tax(Osd), Park, Vallam Vadagal, Echoor Post, Corporate Circle-3(2), Sriperumbudur Taluk, Chennai Kancheepuram Dist, Kanchipuram-631604. [Pan: Aaach2759N] (अपीलार्थी/Assesse) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assesse By : Shri N.Venkatasubramanian, C.A, प्रत्यर्थी की ओर से /Respondent By : Shri P.Sajit Kumar, Jcit सुनवाई की तारीख/Date Of Hearing : 04.07.2024 घोषणा की तारीख /Date Of Pronouncement : 31.07.2024

For Respondent: Shri P.Sajit Kumar, JCIT
Section 143(3)Section 250Section 36(1)(vii)Section 36(1)(viia)Section 36(2)

…urrender of export benefit received in the form of Duty drawback, in TR-6 Challans, in spite of the legal provision not warranting the appellant to establish the debt. 3. The Ld' CIT(A) has also erred in stating that the facts of the case in T.R.F Ltd ([2010] 323 ITR 397 (SC)) is different from the appellant's case and denied the stand taken by the Hon'ble Apex court that it is not necessary for the assesse to establish the debt as long as the conditions laid down section 36(1)(vii) read with sec.36(2) are satisfied. The Ld.CIT(A) has also erred in insisting that the appellant has not produced additional evidence…

The Andhra Pradesh State Co-Operative Bank Ltd, Vijayawada vs. Assistant Commissioner of Income Tax, Circle-4(1), Hyderabad

In the result, the S.As. filed by the assessee are dismissed

ITA 464/HYD/2023[2010-11]Status: DisposedITAT Hyderabad29 Jul 2024AY 2010-11

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdia

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Ms. K. Haritha, CIT-DR
Section 36Section 36(1)(vii)Section 36(1)(viia)Section 37

…same. 6. Your appellant submits that Commissioner of Income Tax (A) erred in law and facts of the case in not allowing the entire bad debts written off in the books and in not following the decisions of the Hon'ble Supreme Court in the case of TRF Ltd Vs CIT 323 ITR 397 (SC) and Vijaya Bank Vs CIT 323 ITR 166 (SC) and A.P. High Court in the case of CIT vs Inventa Chemicals (2013). 7. The Commissioner of Income Tax (Appeals) ought to have appreciated the fact that the Assessing Officer while computing the income from business should not have included investment depreciation of Rs. 7,05,18,382/- and profit on sale…

The Andhra Pradesh State Co-Operative Bank Ltd, Vijayawada vs. Assistant Commissioner of Income Tax, Circle-4(1), Hyderabad

In the result, the S.As. filed by the assessee are dismissed

ITA 463/HYD/2023[2014-15]Status: DisposedITAT Hyderabad29 Jul 2024AY 2014-15

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdia

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Ms. K. Haritha, CIT-DR
Section 36Section 36(1)(vii)Section 36(1)(viia)Section 37

…same. 6. Your appellant submits that Commissioner of Income Tax (A) erred in law and facts of the case in not allowing the entire bad debts written off in the books and in not following the decisions of the Hon'ble Supreme Court in the case of TRF Ltd Vs CIT 323 ITR 397 (SC) and Vijaya Bank Vs CIT 323 ITR 166 (SC) and A.P. High Court in the case of CIT vs Inventa Chemicals (2013). 7. The Commissioner of Income Tax (Appeals) ought to have appreciated the fact that the Assessing Officer while computing the income from business should not have included investment depreciation of Rs. 7,05,18,382/- and profit on sale…

The Andhra Pradesh State Co-Operative Bank Ltd, Vijayawada vs. Assistant Commissioner of Income Tax, Circle-4(1), Hyderabad

In the result, the S.As. filed by the assessee are dismissed

ITA 462/HYD/2023[2013-14]Status: DisposedITAT Hyderabad29 Jul 2024AY 2013-14

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdia

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Ms. K. Haritha, CIT-DR
Section 36Section 36(1)(vii)Section 36(1)(viia)Section 37

…same. 6. Your appellant submits that Commissioner of Income Tax (A) erred in law and facts of the case in not allowing the entire bad debts written off in the books and in not following the decisions of the Hon'ble Supreme Court in the case of TRF Ltd Vs CIT 323 ITR 397 (SC) and Vijaya Bank Vs CIT 323 ITR 166 (SC) and A.P. High Court in the case of CIT vs Inventa Chemicals (2013). 7. The Commissioner of Income Tax (Appeals) ought to have appreciated the fact that the Assessing Officer while computing the income from business should not have included investment depreciation of Rs. 7,05,18,382/- and profit on sale…

The Andhra Pradesh State Co-Operative Bank Ltd, Vijayawada vs. Assistant Commissioner of Income Tax, Circle-5(1), Hyderabad

In the result, the S.As. filed by the assessee are dismissed

ITA 461/HYD/2023[2012-13]Status: DisposedITAT Hyderabad29 Jul 2024AY 2012-13

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdia

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Ms. K. Haritha, CIT-DR
Section 36Section 36(1)(vii)Section 36(1)(viia)Section 37

…same. 6. Your appellant submits that Commissioner of Income Tax (A) erred in law and facts of the case in not allowing the entire bad debts written off in the books and in not following the decisions of the Hon'ble Supreme Court in the case of TRF Ltd Vs CIT 323 ITR 397 (SC) and Vijaya Bank Vs CIT 323 ITR 166 (SC) and A.P. High Court in the case of CIT vs Inventa Chemicals (2013). 7. The Commissioner of Income Tax (Appeals) ought to have appreciated the fact that the Assessing Officer while computing the income from business should not have included investment depreciation of Rs. 7,05,18,382/- and profit on sale…

The Andhra Pradesh State Co-Operative Bank Ltd, Vijayawada vs. Assistant Commissioner of Income Tax, Circle-4(1), Hyderabad

In the result, the S.As. filed by the assessee are dismissed

ITA 460/HYD/2023[2011-12]Status: DisposedITAT Hyderabad29 Jul 2024AY 2011-12

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdia

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Ms. K. Haritha, CIT-DR
Section 36Section 36(1)(vii)Section 36(1)(viia)Section 37

…same. 6. Your appellant submits that Commissioner of Income Tax (A) erred in law and facts of the case in not allowing the entire bad debts written off in the books and in not following the decisions of the Hon'ble Supreme Court in the case of TRF Ltd Vs CIT 323 ITR 397 (SC) and Vijaya Bank Vs CIT 323 ITR 166 (SC) and A.P. High Court in the case of CIT vs Inventa Chemicals (2013). 7. The Commissioner of Income Tax (Appeals) ought to have appreciated the fact that the Assessing Officer while computing the income from business should not have included investment depreciation of Rs. 7,05,18,382/- and profit on sale…

The Andhra Pradesh State Co Operative Bank Limited, Hyderabad vs. Asst. Commissioner of Income Tax, Circle-4(1), Hyderabad

In the result, the S.As. filed by the assessee are dismissed

ITA 241/HYD/2018[2009-10]Status: DisposedITAT Hyderabad29 Jul 2024AY 2009-10

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdia

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Ms. K. Haritha, CIT-DR
Section 36Section 36(1)(vii)Section 36(1)(viia)Section 37

…same. 6. Your appellant submits that Commissioner of Income Tax (A) erred in law and facts of the case in not allowing the entire bad debts written off in the books and in not following the decisions of the Hon'ble Supreme Court in the case of TRF Ltd Vs CIT 323 ITR 397 (SC) and Vijaya Bank Vs CIT 323 ITR 166 (SC) and A.P. High Court in the case of CIT vs Inventa Chemicals (2013). 7. The Commissioner of Income Tax (Appeals) ought to have appreciated the fact that the Assessing Officer while computing the income from business should not have included investment depreciation of Rs. 7,05,18,382/- and profit on sale…

The Andhra Pradesh State Cooperative Bank Limited, Hyderabad vs. Asst.Commissioner of Income Tax, Circle-5(1), Hyderabad

In the result, the S.As. filed by the assessee are dismissed

ITA 1796/HYD/2017[2008-09]Status: DisposedITAT Hyderabad29 Jul 2024AY 2008-09

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdia

For Appellant: Shri M.V.Anil Kumar, AdvocateFor Respondent: : Ms. K. Haritha, CIT-DR
Section 36Section 36(1)(vii)Section 36(1)(viia)Section 37

…same. 6. Your appellant submits that Commissioner of Income Tax (A) erred in law and facts of the case in not allowing the entire bad debts written off in the books and in not following the decisions of the Hon'ble Supreme Court in the case of TRF Ltd Vs CIT 323 ITR 397 (SC) and Vijaya Bank Vs CIT 323 ITR 166 (SC) and A.P. High Court in the case of CIT vs Inventa Chemicals (2013). 7. The Commissioner of Income Tax (Appeals) ought to have appreciated the fact that the Assessing Officer while computing the income from business should not have included investment depreciation of Rs. 7,05,18,382/- and profit on sale…

John Distilleries Pvt Ltd., Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-1(1), Bangalore

In the result, appeals of the assessee in ITA No

ITA 987/BANG/2023[2016-17]Status: DisposedITAT Bangalore24 Jul 2024AY 2016-17

Bench: Shri Chandra Poojari & Shri Keshav Dubey

…d in the earlier year. 6. The above facts have not been disputed by ld. DR that the assessee has actually written off in the assessment year under consideration as bad debts of Rs.1,87,70,011/-. The Honble Apex Court in the case of T.R.F. Ltd. V/s CIT (2010) 323 ITR 397 (SC) has held that "w.e.f. 1-4-1989, it is enough if bad debt is written off as irrecoverable in accounts of assessee to satisfy the condition of Section 36(1)(vii) of the Income-tax Act, 1961". In view of the above amendment w.e.f. 1-4- 1989 the assessee is entitled to claim deduction as it would satisfy the purpose of the Act. In view of above,…

John Developers, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-1(1), Bangalore

In the result, appeals of the assessee in ITA No

ITA 847/BANG/2023[2016-17]Status: DisposedITAT Bangalore24 Jul 2024AY 2016-17

Bench: Shri Chandra Poojari & Shri Keshav Dubey

…d in the earlier year. 6. The above facts have not been disputed by ld. DR that the assessee has actually written off in the assessment year under consideration as bad debts of Rs.1,87,70,011/-. The Honble Apex Court in the case of T.R.F. Ltd. V/s CIT (2010) 323 ITR 397 (SC) has held that "w.e.f. 1-4-1989, it is enough if bad debt is written off as irrecoverable in accounts of assessee to satisfy the condition of Section 36(1)(vii) of the Income-tax Act, 1961". In view of the above amendment w.e.f. 1-4- 1989 the assessee is entitled to claim deduction as it would satisfy the purpose of the Act. In view of above,…