COMMISSIONER OF INCOME TAX Vs. SUSHILA MALLICK

JUDGEMENT

(1.) Present appeal is filed by the department under Section 260-A of the Income Tax Act, 1961 against the judgment and order dated 31.01.2011 passed by the Income Tax Appellate Tribunal, Lucknow, in Income Tax Appeal No.678/LKW/2009, for the assessment year 2006-07.

(2.) On 11.01.2013, a Coordinate Bench of this Court has admitted the instant appeal on the following substantial question of law:

(3.) The brief facts of the case are that the assessee is engaged in the money lending business. The assessee has deposited a sum of Rs.34.0 lacs in the form of fixed deposit with M/s City Cooperative Bank Limited; and Badla deposit of Rs.5 lacs with M/s. Century Consultants Ltd., Lucknow. Thus, the total amount was Rs.39 lacs in both the deposits. The assessee has written the said amount as bad debt in the books of account. During the scrutiny, the A.O. opined that the said amount is a capital investment and cannot be written off as a bad debt. The CIT (A) has confirmed the order. Being aggrieved, the assessee has filed the second appeal before the Tribunal who has deleted the said addition. Not being satisfied, the department has knocked the door of this Court by filing the present appeal.