1994 (4) TMI 60 - HC - Income Tax

Summary

The Revenue filed a petition under section 256(2) of the Income-tax Act, 1961 regarding the allowance of bad debts amounting to Rs. 18,662 for the assessment year 1975-76. The High Court directed the Income-tax Appellate Tribunal to refer the question of whether these debts were justified, emphasizing that debts should be decided objectively based on actual facts and not on the position of the creditors.