Law:

Section:

[2009] 178 Taxman 163 (Delhi)/[2009] 308 ITR 246 (Delhi) [2009] 178 TAXMAN 163 (DELHI) HIGH COURT OF DELHI Commissioner of Income-tax - V v. Realest Builders & Services Ltd. * BADAR DURREZ AHMED AND RAJIV SHAKDHER, JJ. IT APPEAL NO. 329 OF 2007â-  AUGUST 28, 2008 Section 36(1)(vii) of the Income-tax Act, 1961 - Bad debts - Assessment year 2001-02 - Assessee had given a loan to 'S' and interest accrued on said loan was being assessed as assessee's business income - Subsequently, 'S' suffered heavy loss and its financial position deteriorated to such an extent that even cheques issued by it towards repayment of loan and interest had been repeatedly returned unpaid on ground of insufficiency of funds - Therefore, board of directors of assessee-company negotiated issue with 'S' and a compromise deed was executed between assessee and 'S', as a result of which assessee wrote off irrecoverable amount in its books of account - Assessing Officer disallowed assessee's claim of deduction in respect of said amount on ground that amount written off as bad debt represented capital loss, as assessee was not in business of money lending - On appeal, Commissioner (Appeals) returned finding of fact that assessee was in business of money lending and there was no question of treating principal amount written off as capital loss - He, therefore, allowed assessee's claim - Tribunal upheld order of Commissioner (Appeals) - Whether on facts, Tribunal was justified in its view - Held, yes Ms. Rashmi Chopra for the Appellant. Prem Nath Monga and Manu Monga for the Respondent. JUDGMENT Badar Durrez Ahmed, J. - This appeal filed by the revenue pertains to the assessment year 2001-02 and arises out of the order dated 22-6-2006 passed by the Income-tax Appellate Tribunal (hereinafter referred to 'the Tribunal') in ITA No. 1516/Delhi/2004. The revenue's appeal before the Tribunal involved the question whether the Commissioner of Income-tax (Appeals) had erred in deleting the addition of Rs. 32,90,820 made by the Assessing Officer after disallowing the deductions claimed in respect of bad debts to the said extent written off by the assessee in the year in question. 2. The facts are…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492