1989 (1) TMI 16

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..... me tax under section 256(2) of the Income-tax Act, 1961, for directing the Tribunal to draw up a statement of case and refer the following question of law for the opinion of this court: "Whether the Tribunal was correct in law in allowing deduction on account of bad debt (Rs. 41,006) in view of the condition laid down in section 36(2)(i) (a) having not been fulfilled in the present case?" New Ja .....

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..... e, the Appellate Assistant Commissioner wrote off the amount as a bad debt. The Income-tax Appellate Tribunal noticed that in the beginning of the year, the assessee had considered the amount good because filing of a suit was contemplated. However, after receipt of the legal opinion, the idea of filing a suit was given up. Further, even though legal opinion was dated April 10, 1972, since the com .....

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..... ance expenditure which was a justified deletion. Consequently, it is apparent that what has been allowed, is not writing off as a bad debt but as an advance for expenditure in the computation of income. This is a finding of fact and, in these circumstances, no question of law arises. The application is rejected. However, we make no order as to costs. Petition dismissed.
Case laws, Decisions .....

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