South India Surgical Co. Ltd v. Acit Reported

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION NOTICE OF MOTION NO.2791 OF 2007 IN INCOME TAX APPEAL (L) NO.1688 OF 2007 The CIT-8 ..Appellant V/s. Airborne Express India Pvt.Ltd., ..Respondent ---- Mr.Suraj M.Shah, Sandip Wasnik and P.S.Sahadevan for the appellant. ---- Coram : F.I.Rebello & R.S.Mohite,JJ Date : 26.02.2008. PC 1. Considering the cause shown, delay condoned. Office to register the appeal. INCOME TAX APPEAL (L) NO.1688 OF 2007 1. The Commissioner (Appeals) in his order held that the debt which has been written off by the appellant (assessee) was a bad debt and therefore, held disallowance by the AO is bad in law and consequently, directed the AO to allow Rs.53,17,023/- as bad debts. This was clearly a finding of fact. Revenue aggrieved, preferred an appeal before the ITAT. Revenue relied on the judgment of the Madras High Court in the case of South India Surgical Co. Ltd., Vs. ACIT reported : 2 : in 287 ITR 62 (Mad). Tribunal found that, that decision was rendered before the amendment to Section 36(1)(vii) and consequently would not be applicable to the facts of the present case. Learned Tribunal further considered the evidence produced by the appellant and confirmed the findings recorded by the Commissioner (Appeals) that debts which are written off are in fact, bad debts and not any other debts. This would be clearly a finding of fact and in confirmity with the amended provision and question of law as framed would not arise and consequently, appeal dismissed. (R.S.Mohite,J) (F.I.Rebello,J) (R.S.Mohite,J) (F.I.Rebello,J)