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TMI Blog2001 (9) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... nder reference? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in rejecting the assessee's claim for deduction of the sum of Rs.1,76,751 as a bad debt?" In compliance with the direction of this court the Tribunal has referred the aforesaid questions along with the statement of case. The assessee is a private limited company carrying on the business as tea brokers, auctioneers and financiers. During the year ended March 31, 1982, relevant to the assessment year 1982-83, the assessee has debited an amount of Rs.1,76,751 in the account as "irrecoverable advances written off." The above debit had arisen out of Rs.2 lakhs advanced in the course of business to Shri R. P. Gupta against the requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covery of loan are still there. Therefore, this court also held against the assessee in the assessment year 1980-81 in I.T.R. No. 151 of 1991 judgment dated December 17, 1993. Heard learned counsel for the parties. The relevant assessment year is 1982-83. The assessee again claimed similar deduction that either the amount should be allowed as bad debt or should be allowed as business loss under section 28 of the Act. The Tribunal has considered whether the debt has become bad or not in para. 5 of its order which reads as under: "The case of the assessee under section 36(1)(vii) has rightly been rejected by the Commissioner of Income-tax (Appeals). The bad debt can only be allowed if the debt arose in the course of the business of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at situation did not arise in the present case. Consequently, the disallowance sustained by the Commissioner of Income-tax (Appeals) is maintained." The loan was advanced in 1978. The assessee for the first time claimed the debt as a bad debt in the assessment year 1980-81. The claim was rejected. Again the assessee has claimed in the year under consideration 1982-83. That has also been rejected up till the Tribunal. It is also brought to our notice by counsel for the assessee that the loan has not been recovered so far. When the consideration in 1982-83 and as on date it is the same and the advance that is treated as loan has not been recovered till today. Why the claim of the assessee as bad debt should not be allowed, we do not find a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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