9911796707
TMI Blog1983 (11) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... bt of Rs. 10,759 claimed in respect of Roshan Lal Sons, Jogiwan,Delhi. The ITO rejected the assessee s claim on the short ground that the matter regarding the said debtor was referred to arbitration and the arbitrator s award was dt.6th May 1978and, therefore, in the account year ending23rd June 1977, there were chances of recovery and therefore, allowability of bad debt would be considered only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etermining Rs. 14,193 as payable by the debtor to the assessee against principal and interest accruing till the date of the said decision, but the award could not be executed because the debtor could not be traced. The AAC observed that the assessee s writing off the debt on23rd June 1977was premature when the arbitration proceedings were going on before the arbitrator on the date of closing the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... debt is recovered from the said debtor in a subsequent year, the revenue can take action u/s 41(1) and assess the same in the year the money is received. Under these circumstances, we accept the assessee s contention and hold that the debt of Rs. 10,296 become bad in the year under consideration and should be allowed as such. We, accordingly, allow reduction of Rs. 10,296. 6. Ground regarding di ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
