1988 (12) TMI 5

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..... the Revenue. For the assessment year 1964-65, the assessee claimed a bad debt of Rs. 10,305. The Income-tax Officer disallowed the claim on the ground that the debt had become bad not in the previous year relevant to the assessment year 1964-65 but in the preceding previous year. The Income-tax Officer's finding was upheld in appeal. At this stage, the assessee requested the Appellate Assistant .....

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..... incurred in the course of carrying on the assessee's business was not disputed. What was disputed was the interpretation placed by the Appellate Assistant Commissioner upon section 155(6). The submission on behalf of the Revenue was that, as the assessee had not accepted the Income-tax Officer's finding in regard to the year in which the debt had become bad at the stage of the assessment proceedi .....

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..... lable only in the event of the assessee not filing an appeal or revision in regard to his claim in the matter of the year of write off. The Tribunal, accordingly, upheld the Appellate Assistant Commissioner's order. From out of the Tribunal's judgment this question arises "Whether the provisions of section 155(6) have been correctly construed by the Tribunal ?" The relevant portion of sectio .....

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..... endment." Dr. Balasubramanian, learned counsel for the Revenue, stressed the words ". . . the Income-tax Officer may... allow such debt or part as deduction for such earlier previous year, if the assessee accepts such finding of the Income-tax Officer. . ." in section 155(6). In his submission, these words signified that the benefit of the provisions of section 155(6) was available to the assess .....

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..... cer to allow such debt or a part thereof as a deduction for the year in regard to which he is satisfied that the debt or part thereof became a bad debt remains. His finding has only been confirmed in appeal or in revision. There is no warrant for construing section 155(6) so as to hold that an assessee forfeits the right to have a bad debt written off in the year in which the. Income-tax Officer f .....

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