DEPUTY COMMISSIONER OF INCOME TAX Vs. INSILCO LTD

JUDGEMENT

(1.) CIVIL Misc. No. 2894 of 2011 (exemption) Exemption allowed, subject to all just exceptions. Accordingly, the application stands disposed of. IT Appeal No. 311 of 2011 & Civil Misc. No. 2894 of 2011 With the consent of the counsel for the parties, we have heard the matter finally.

(2.) THIS is an appeal preferred by the Revenue under S. 260A of the IT Act, 1961 (for short "the Act") against the order of the Tribunal, dt. 13th Nov., 2009 for the asst. yr. 2004-05.

(3.) AGGRIEVED by the order of the CIT, the assessee filed an appeal before the Tribunal. The assessee contended that there was no error in the assessment order and the order passed under S. 263 of the Act by the CIT is liable to be set aside. The Revenue contended before the Tribunal that the amounts in question were in respect of inter-corporate deposits given by the assessee and the amount written off did not have any connection with the business of the assessee. It was also contended that the provisions of s. 36(2) were not complied with as the assessee did not show the abovestated amount as income during the years preceding to the assessment year. The assessee had conceded that though the amounts written off in respect of some persons were on account of inter-corporate deposits, the same had been given in the course of business. The assessee further submitted before the Tribunal that he had specifically brought this fact to the notice of the CIT in an alternative prayer that the deduction of the same was allowable to the assessee company as a business loss under S. 37 and the CIT did not consider the same.