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TMI Blog1980 (9) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed by the ITO. It was the contention of the assessee that the assessee had supplied grains to M/s T.S. Rajgopal. The said firm M/s T.S. Rajagopal did not pay the amount of Rs. 6,500. The firm had filed insolvency petition of No. 12 of 1972 in the Court of Civil Judge, Senior Division, Pune. The said firm acknowledged that it has to pay bad debt amounting to Rs. 6,500 to the assessee. According ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n amount of Rs. 6,500 to the assessee. At the time of hearing the appeal, it was stated before me that upto this day the assessee has not been in a position to recover a rupee out of the amount of Rs. 6,500. It may be mentioned that the petitioner had given list of creditors wherein the assessee's name appears on page 3 of the compilation. Then there was a stay obtained and the assessee had to inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ances it was urged by Shri Shah that the assessee's claim may be allowed. Reliance was placed by him on 120 ITR 792. 6. I have gone through the judgment of the Bombay High Court and I find that the observation of the High Court is very useful which is reproduced below: "As to when debt becomes bad depends upon the circumstances and the materials brought on record and there is no general rule o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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