1989 (3) TMI 35

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..... i Technos was an allowable deduction in the hands of the assessee ? 2. Whether the Income-tax Appellate Tribunal was correct in law in holding that the bad debts of Rs. 1,25,271 were genuine and ripe for write off in the year under consideration ?" The relevant assessment year is 1975-76. The assessee claimed deduction of a sum of Rs. 84,143 as an amount paid as commission to Nishi Technos. The Income-tax Officer did not allow this deduction and the Commissioner of Income-tax (Appeals) confirmed the order of the Income-tax Officer. While doing so, he observed that, before a deduction could be allowed, it had to be proved that the payments and transactions were genuine. He noticed that the amount of commission said to have been paid to .....

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..... ission was paid including correspondence between the assessee and Nishi Technos. Mr. Pandey, learned counsel for the Revenue, disputes this contention of Mr. Aggarwal and further urges that the fact that a demand draft for Rs. 65,000 was issued in favour of Nishi Technos is not conclusive evidence of the existence of the party and/or services having been rendered by it and/or the genuineness of the payment. We think there is force in his argument and a question of law does arise in the facts and circumstances of the case. The second question pertains to an amount of Rs. 1,25,271 alleged to have been written off as a bad debt. The assessee furnished a list of the various amounts written off as bad debts. The Income-tax Officer found th .....

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..... n-recovery before the Tribunal. It also filed the order of the Commissioner of Income-tax (Appeals) for the assessment year 1974-75 dated May 12, 1982, as abovementioned, in which the Commissioner of Income-tax (Appeals) had allowed the entire claim ; the Tribunal also noted the information furnished by the assessee to it that the subsequent recovery in the assessment year 1975-76 was only an amount of Rs. 3,162 and there was no recovery in the assessment years 1977-78 and 1978-79. The Tribunal further observed that there was no question of any steps to be taken against the Railways for reimbursement of the amounts as these were due from the Railways. After dealing with the amounts pertaining to the Railways, which were only Rs. 31,139, it .....

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