9911796707
TMI Blog1988 (6) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel submitted that this is the second round of appeal before the Tribunal, as vide ITA No. 236/Jp/78-79 order dt. 31st July, 1980, the matter was remanded to the files of the learned AAC to consider the objection of the ITO and then decide the issue. Before the CIT(A), the plea of the assessee had been that the consignee M/s Sumerchand & Co. Was not at all traceable and the assessee had only info ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the payment. According to the assessee, the CIT(A) did not appreciate the fact that the said party was allowed to take delivery of goods without making payment subsequent to the said transaction had made the payment which clearly also goes to show that the intentions of the parties are not at all fair and they have no intentions of making good the claim on them. This fact should have been looke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record to the claim of bad debt placed before the authorities. Evidence in regard to the bad state of affairs of the parties have also been placed before the authorities below and they have also been brought to our notice. The learned CIT(A) observes "as per the assessee's own admission, the assessee delivered the goods to M/s Sumerchand & Co. on 2nd Nov., 1970; 23rd March, 1971, and 25th June, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce he took any step for recovery of the amount from M/s Sumerchand & Co. Under the circumstances, the ITO was, therefore, justified in disallowing the assessee's claim of Rs. 27,412." The reading of the above is clearly indicative of the fact that the debt is irrecoverable one. Once it is established and accepted that it is irrecoverable, for mere fault of not filing any legal proceedings, the cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad overlooked or by-passed certain principles for which if any proceedings are to be initiated, they would have to be initiated by the proper concerned authorities with which the Revenue authorities are not concerned for allowing or not allowing of a claim. A claim cannot be denied because of certain procedures having been thwarted in regard to other commercial laws. We allow the claim of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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