Dismissing the appeal of the revenue; the Court held that; waiver of right to receive sale consideration from director and family members, as per family settlement which was recognised by passing order u/s. 171 and the amount was written off in the books of account . Tribunal was justified in allowing the debt as bad debts. ( AY. 2003-4, 2004 -05)
CIT v. Millennia Developers (P.) Ltd. (2019) 260 Taxman 142/ 307 CTR 226 /174 DTR 282 (Karn.)(HC).Editorial: SLP of revenue is dismissed , CIT v. Millennia Developers (P.) Ltd ( 2019) 266 Taxman 186 (SC)
S. 36(1)(vii) : Bad debt–Waiver of right to receive sale consideration from director and family members–Avoid deadlock in management-Family settlement–Partition recognised u/s 171–Allowable as bad debt [S. 171]