COMMISSIONER OF INCOME TAX Vs. GIRISH BHAGWATPRASAD

JUDGEMENT

(1.) THE Revenue has suggested for following question in para 4 of its application seeking a direction on the Tribunal to forward the statement of case in respect thereof under S. 256(2) of the IT Act, 1961.

(2.) THE Tribunal rejected the application made under S. 256(1) of the Act for forwarding these questions to the High Court on 5th Jan., 1998 holding that, in view of the amended provision of s. 36(1)(vii) of the Act which came into force from 1st April, 1989, the assessee was not required to establish that the debt had really become bad during the previous year.

(3.) THE CIT(A) found that the amended provisions of S. 36(1)(vii) of the Act were applicable under which the assessee was not required to establish that the debt had become bad in the previous year and mere writing off of the amount as bad debt was sufficient. Even on merits, the first appellate authority found that there was no chance for the assessee to recover the amount. Hence, the debt really became bad. The Tribunal also upheld the contention of the assessee on the basis of the provisions of S. 36(1)(vii) of the Act which came into force from 1st April, 1989, and upheld the findings of the first appellate authority.