IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN TUESDAY, THE 24TH FEBRUARY 2009 / 5TH PHALGUNA 1930 ITA.No. 60 of 2008(P) --------------------- ITA.230/COCH//1997 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/RESPONDENT: ------------------------------- THE COMMISSIONER OF INCOME-TAX, THIRUVANANTHAPURAM. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.GEORGE K. GEORGE, SC FOR IT SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): APPELLANT: ------------------------- KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LIMITED, THIRUVANANTHAPURAM. ADV. SRI.M.PATHROSE MATTHAI, SENIOR ADVOCATE FOR R SRI.SAJI VARGHESE FOR R SRI.P.THOMAS GEEVERGHESE FOR R THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 24/02/2009, THE COURT ON 24/02/2009 DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & K.SURENDRA MOHAN, JJ. .................................................................... I.T. Appeal No.60 of 2008 .................................................................... Dated this the 24th day of February, 2009. JUDGMENT Ramachandran Nair, J. Heard Standing Counsel appearing for the appellant and Senior counsel appearing for the respondent. Question numbers 4 and 5 pertain to respondent-assessee's claim for deduction of bad debts. Even though department contended that claim was not made in the return, it is clear from the orders that this argument is not tenable. On the other hand, assessee had made the claim as a provision in the return itself and later in the assessment and before the appellate authorities assessee substantiated that the debts had in fact become bad. It is seen from the orders of the first appellate authority and the Tribunal that they have considered each and every debt and the stage of winding up of the companies pending in Company Court and the orders of the Company Court in every case and they have found that the debts have become bad and irrecoverable. The claim was allowed by the first appellate authority and the Tribunal after being satisfied that the debts had really 2 become bad. The very same issue stands decided in assessee's own case for another year by decision of this court in C.I.T. V. KERALA STATE INDUSTRIAL DEVELOPMENT CORPN. LTD. (2007) 289 ITR 238. In view of the factual finding by the authorities below about the items of debt becoming bad pursuant to orders of the Liquidator and the Company Court, we do not find any ground to entertain the appeal filed by the department. We, therefore, dismiss the appeal. C.N.RAMACHANDRAN NAIR Judge K.SURENDRA MOHAN Judge pms