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TMI Blog1971 (8) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... e is : " Whether, on the facts and circumstances of the case, the sum of Rs. 10,55,025 due from Kunwar Ganesh Singh was allowable as a bad debt under section 10(2)(xi) of the Income-tax Act ? " Both the Tribunal as well as the High Court had held against the department on the point in issue. The facts of the case are fully set out in the statement of the case submitted by the Tribunal to the High Court. It is sufficient to extract the facts as set out in that statement: " 2. The statement of the case relates to the assessment year 1957-58. For this assessment year, the assessee changed his previous year into the financial year, and consequently, the previous year for the present assessment year covered a period of 18 months endi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. 6. The business of ' Sadhasiva Vishwanath ' was apparently started as a partnership business, in which the debtor was to be the working partner entitled to a 3 as. share. The Maharajadhiraja supplied all the funds and the accounts of the Maharajadhiraja showed advances aggregating to Rs. 32,00,000 as under : Rs. August 31, 1921 To Kunwar Ganesh Singh for starting a Guddee for ready and forward transactions in various goods, import of goods and dealings in shares 2,50,000 September 17,1921 To Kunwar Ganesh Singh for dealings in shares 1,50,000 " For starting a Guddee styled Sadashiva Vishwanath 2,00,000 " To Kunwar Ganesh Singh for Guddee and other business 4,50,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or for Rs. 16,84,596. A decree was obtained on March 14, 1927, for Rs. 17,78,476 inclusive of further accrued interest of Rs. 93,835. A part of the debt was realised and a sum of Rs. 16,64,596 remained unrealised as due from the debtor. The assessee wrote off the sum of Rs. 16,64,596 in the accounting year and claimed the same as a bad debt arising in his money-lending business. 10. The Income-tax Officer disallowed the claim of Rs. 6,09,571 on the ground that it represented interest pertaining to the original advance of Rs. 32,00,000 and not connected with the claim of irrecoverable loan in question. As regards the balance of Rs. 10,55,025 the Income-tax Officer held that it did not relate to the money-lending transactions of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aja. The assessee succeeded the money-lending business of the father. The Tribunal further held that the assessee continued to carry on the money-lending business in the accounting year and allowed deduction of Rs. 10,55,025 as bad debt being in the nature of irrecoverable loan of the 's money-lending business." The findings reached by the Tribunal are findings of fact. The High Court also pointed out that they are all findings of fact. This is whatt!he High Court says as regards the findings reached by the Tribunal : " All the questions that we have referred to above were questions of fact, and the Tribunal came to its own findings on those facts. It was not, as it could not be urged before us that those findings were not based upon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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