The Commissioner Of Income Tax – 6, Mumbai v. Abc Bearing Limited

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2262 OF 2009 The Commissioner of Income Tax – 6, Mumbai..Appellant. Versus ABC Bearing Limited ..Respondent. Mr.Suresh Kumar for the appellant.Ms.Aarti Vissanji with Mr.S.J. Mehta for the respondent. CORAM : J.P. Devadhar &K.K. Tated, JJ. P.C. : DATE : 16th September 2011 1.Whether the Income Tax Appellate Tribunal was justified in allowing the claim of the assessee under the head “inter-corporate deposits” written off by the assessee is the question raised in this appeal. 2.The finding of fact recorded by the Income Tax Appellate Tribunal in para-5 of its order is that the assessee was engaged in the business of advancing loans and interest received from the inter-corporate deposits have been assessed as business income in the past. Since the said inter-corporate deposits had become bad, the assessee in the assessment year in question had written off that amount. Since the interest income from the inter-corporate deposits have been assessed as business income, in the facts of the present case allowing the claim of the assessee in writing off the inter-corporate deposits cannot be faulted. Accordingly, the appeal is dismissed with no order as to costs.