Pr. Commissioner Of Income Tax (Central)4 v. Rosy Blue Securities Pvt Ltd

R.M. AMBERKAR (Private Secretary)IN THE HIGH COURT OF JUDICATURE AT BOMBAYO.O.C.J. INCOME TAX APPEAL NO. 925 OF 2016 Pr. Commissioner of Income Tax (Central)4..Appellant Versus Rosy Blue Securities Pvt Ltd..Respondent ................... Mr. Tejveer Singh for the Appellant...................Mr. Tejveer Singh for the Appellant................... CORAM : AKIL KURESHI & M.S. SANKLECHA, JJ. DATE : JANUARY 21, 2019. P.C.: 1.Revenue is in the appeal against the judgment of theIncome Tax Appellate Tribunal ("the Tribunal" for short) dated 10.4.2015 raising following question for our consideration:- "Whether on the facts and in the circumstances of the case and inlaw, the Tribunal was justified in allowing the claim of bad debts anddirecting the Assessing Officer to verify only whether the bad debtshave been written off without appreciating the fact that the assesseehad a running account with the sub-broker and carried outtransactions with the sub-broker till 31.3.2001 and as such, the debtscould be termed to be bad at all as on 31.3.2001 itself?" 2.The issue pertains to the assessee's claim of writing ofthe bad debts of Rs. 2.61 crores (rounded of). The Tribunalin the impugned judgment noticed that the assessee hadbusiness relations with M/s. Kiraj Consultants Pvt Ltd whowas sub-broker of the assessee. In the course of suchbusiness transactions, the assessee transferred an amount ofRs. 2.61 crores to bad debts account. The Assessing OfÏceralso verified that the amount was in fact written of despitewhich did not grant the assessee's claim. The Tribunal in theimpugned judgment referred to and relied upon a decision ofthe Supreme Court in the case of TRF Ltd Vs. CIT[1]. TheTribunal was of the opinion that the Assessing OfÏcer couldnot have questioned the decision of the assessee to write ofthe debt as bad debt. 3.We are broadly in agreement with the view of theTribunal. The assessee found that the debts of M/s. KirajConsultants Pvt Ltd were irrecoverable and therefore, wroteof the same as bad debts. The Assessing OfÏcer could nothave disallowed the same merely on the ground of doubtingwith the assessee's wisdom to do so. 1323 ITR 397 4.No question of law arises. Income Tax Appeal isdismissed. [ M.S. SANKLECHA, J. ] [ AKIL KURESHI, J ]