9911796707
TMI Blog1980 (12) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... the asst. yr. 1978-79. The assessee is an HUF carrying on business under the name and style of M/s Khubi Ram Dwarka Dass, Charkhi Dadri, Bhiwani. According to the account of M/s Goyal Dal Mill, Bhiwani in the books of the assessee, goods worth Rs. 55,937.17 were sold by the assessee to M/s Goyal Dal from7th July, 1975to14th Aug., 1975. The said Mill paid Rs. 20,000 on29th July, 1975and Rs. 15,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,937.17 due from it. Those letters were dt. 14thMarch, 1978 and were placed before the ITO as well as the AAC. The assessee also stated that its representative personally went to the party concerned and demanded the amount due but nothing was paid. Thereafter, the assessee sought the good offices of influential person of Bhiwani where the Dal Mill is situated requesting them to assist it in recove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount from the party and only after having failed to do so and having lost all hopes for recovery, it wrote off. This proves that the debt had become irrecoverable and bad in the year of account relevant to the assessment year under appeal.
4. In the result, therefore, we direct the ITO to allow the assessee's claim for the bad debt of Rs. 18,937.17. The appeal is allowed. X X X X Extracts X X X X X X X X Extracts X X X X
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