COMMISSIONER OF INCOME TAX Vs. BOBCARDS LTD

JUDGEMENT

(1.) HAVING heard both sides and perusing the order passed by the Tribunal, we are of the view that the Appeal deserves to be admitted on the following questions of law as they are substantial:

(2.) THE Respondent waives service.

(3.) THE Registrar (Judicial)/Registrar, High Court, Original Side, Bombay to ensure that the original record in relation to this Appeal is summoned from the Tribunal and offered for inspection of the parties. This paper book is treated sufficient for the purpose of admission of this Appeal. However, the Registry must further ensure preparation of complete paper book in accordance with the Rules. The Registry in the first instance must send intimation of admission of this Appeal enclosing therewith a copy of this order so as to enable the Tribunal to act accordingly. In relation to question No. 4.1, which is with regard to deduction on account of bad debts, the Tribunal has rendered a finding in favour of the Assessee. That finding is rendered concurrently with that of the Commissioner. In para 8 of the order under challenge, the Tribunal held that after amendment in section 36(1)(viia), the assessee is not required to demonstrate that the debt is bad. In that regard, we have perused section 36(1)(viia). We have also perused the relevant part of the order passed by the Commissioner. Section 36(1)(viia) of the Income Tax Act reads as under: