As per sec 28(2) bad debt written off as irrecoverable is allowed but in case of Bank deduction is allowed only to the extent exceeds the credit balance

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The appeal by the Revenue was filed on 17.12.2008 and the appeal by the assessee was filed on 27.11.2008. The assessee is a public sector undertaking and, therefore, as per the decision of Hon'ble Supreme Court in the case of ONGC Vs CCE [1995] Suppl(4) SCC 541 permission of the committee of disputes was necessary for filing the appeal before the Tribunal. The committee on disputes did not permit the Revenue to raise Ground No. 1 in its appeal and similarly the COD did not give permission on Ground Nos. 2 and 3 raised by the assessee in its appeal. The COD has granted permission to raise additional ground in assessee’s appeal. However, the Hon'ble Supreme Court in Civil Appeal No. 1883 of 2011 in the case of Electronic Corporation of India vs. Union of India vide order dated 17.02.2011 has held that the direction of the Hon'ble Supreme Court of India that earlier directions of the Hon’ble Supreme Court for permission of Committee on disputes for filing appeals by public sector undertakings has failed and therefore had to be recalled and accordingly recalled the aforesaid directions. As a result, all the grounds raised by the assessee as well as by the Revenue are required to be considered. We proceed accordingly.

Citation :
Dy. C.I.T-3(3),Room No.609, 6th floor,Aayakar Bhavan, M.K. Marg,Mumbai-400 020(Appellant) Vs.M/s. Small Industries Development Bank of India 227, Vinay K. Shah Marg,Nariman Point, Mumbai-400 021 PAN NO: AAACS 5687 E (Respondent) & ITA No.: 6771/Mum/2008 Assessment Years: 2004-05 M/s. Small Industries Development Bank of India 227, Vinay K. Shah Marg,Nariman Point, Mumbai-400 021 PAN NO: AAACS 5687 E (Appellant)Vs.Dy. C.I.T-3(3),Room No.609, 6th floor,Aayakar Bhavan, M.K. Marg,Mumbai-400 020 (Respondent)