9911796707
TMI Blog1984 (3) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... riod relevant for the asst. yr. 1977-78 and a sum of Rs. 14,062 was the outstanding amount since the asst. yr. 1978-79. It was submitted that the firm M/s Maheshwari & Co., discontinued its business, one of its partners died and, hence, there were no chances of recovery and not only the assessee but various other parties also had to write-off the amounts outstanding against M/s Maheshwari & Co. The ITO did not accept the assessee's contention. He found that one of debtors of M/s Maheshwari & Co., filed a suit in the Civil Court but the said suit was not contested. He also found that there was not evidence to show that the assessee made any efforts to recover the outstanding debt. On these facts, the ITO disallowed the assessee's claim of ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f its debts amounting to Rs. 1,01,712 but this suit was dismissed vide judgment of the Civil Judge on account of non-compliance on behalf of the plaintiff. This only leads one to believe that M/s Maheshwari & Co., and M/s Nutan Trading Co., had entered into some sort of amicable settlement and that is why the suitor was not inclined to press the suit resulting into its dismissal on account of non-compliance. In the circumstances, I am of the opinion that the ITO was justified in disallowing the claim and, therefore, I decline to interfere." Aggrieved by the above findings, the assessee has come up in the present appeal. 4. Before me, the ld. counsel of the assessee submitted that on 9th July, 1979 a registered notice was issued by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during that assessment year and a further sum of Rs. 5000 was realised during the asst. yr. 1978-79. The balance sum of Rs. 14,062 could not be realised even after a lapse of three years. In the meantime, M/s Maheshwari & Co., closed down its business, and one of the partners of the said business, namely Motilal, dies in the month of December, 1980. The assessee after waiting for three years, chose to write-off the amount as a prudent businessman as there was no chance of recovery and various other parties, including M/s Nutan Trading Co. Khandwa, had to write-off the outstanding dues against M/s Maheshwari Trading Co. In the case of M/s Nutan Trading Co., the claim of bad debt has already been allowed by the AAC. Considering the overall c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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