1.   COMMISSIONER OF INCOME TAX VS. CITICORP MARUTI FINANCE LIMITED, INCOME TAX APPEAL NO. 1712 OF 2010, DATE OF ORDER : 09.11.2010, HIGH COURT OF DELHI

In the instant case the assessee claimed loss on sale of repossessed assets u/s 36(1) (vii) r/w Section 36 (2) of the Act. The claim was covered by Section 36 (1) (vii) read with Section 36 (2) of the Act. He was also of the view that it was not a case of trading loss under Section 28 of the Act. The assessee is entitled to the deduction of the amount of „bad debts written off‟ by it, in the year, when it became irrecoverable, since the repossessed assets were sold and was not a case of mere revaluation of the assets leased and were taken merely possession thereof.

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2.   COMMISSIONER OF INCOME TAX, DELHI – 2 VS. M/S KELVINATOR OF INDIA LTD., INCOME TAX APPEAL NO. 39 OF 1999, JUDGMENT DELIVERED ON : 19.01.2011, HIGH COURT OF DELHI  

The assessment order records that “other income” have been shown by the assessee in Schedule „K‟ to the balance sheet of the respondent company. The question, inter alia, which was examined was arising from the deposit made by the respondent under section 32 AB of the Income Tax Act, 1961 the respondent/assessee was granted relief and in terms thereof, the deduction was recomputed against profit and gains of business as arrived at under Schedule „VI‟ of Companies Act, 1956 (in short, „Companies Act‟) for the purpose of section 32 AB of the said Act. in every case where there is loss of revenue, as a consequence of order passed by the Assessing Officer, can it be treated as prejudicial to interest of revenue. Consequently, if the Assessing Officer has adopted one of the courses permissible in law, which resulted in loss of revenue or where two views are possible and the Assessing Officer has taken one view with which the CIT does not agree, it cannot be treated as an erroneous order prejudicial to the interest of the revenue unless the view taken by the Assessing Officer is unsustainable in law.  

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