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TMI Blog1999 (10) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Rs. 1,34,667 is vitiated by consideration of irrelevant material and a failure to consider the relevant material and facts ? (3) Whether the decision of the Income-tax Appellate Tribunal is vitiated by taking reliance upon the Tribunal's decision in the assessment year 1961-62, which was given in connection with a different matter under entirely different facts and circumstances ?" The aforesaid questions are stated to arise out of the Tribunal's order dated April 22, 1978, in I. T. A. No. 2001 (All) of 1971-72 for the assessment year 1960-61. We have heard Sri R. S. Agarwal, learned counsel for the assessee, at whose instance this reference has been made and Sri A. N. Mahajan, learned standing counsel for the Commissioner. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee-company was passed on April 14, 1960, i.e., after closing of the accounting year, and, is therefore, this alleged bad debt could not be allowed and that the same was not proved to have become bad in this year. The assessee appealed to the Appellate Assistant Commissioner who came to the conclusion that the appellant company had advanced Rs. 20,00,000 to the authorised controller on a promissory note and regular transactions took place between the assessee and the authorised controller and the advance of Rs. 20,00,000 was in connection with the appellant's business so that the said mill should run properly and the investment of Rs. 26,00,000 made for the purchase of the assets of the mill was in jeopardy. The Appellate Assistant Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s attached hereto. Now after the appointment of Shri T. D. Mundhra, the question arose as to how to obtain finances to operate the factory. Title over the properties, comprising the block of sugar factory, was in dispute because we were the auction purchaser, but the sale had not been confirmed in our favour and any confirmation of sale, under the law, would relate back as from the date of auction sale. The previous owners had, therefore in fact lost title over the properties, but retained it for themselves under the law only because no properties can remain for a day without an owner. Under these circumstances, no bank was prepared to advance any amount to Padrauna Raj Krishna Sugar Works Ltd. of which Shri T. D. Mundhra was the authoris ..... X X X X Extracts X X X X X X X X Extracts X X X X
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