1924 (5) TMI 4

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..... s irrecoverable. The two learned Judges have differed in their opinion as to the answer to be given to the reference on the point. Mr. Justice Moti Sagar would leave it entirely to the assessee to determine the time when the debt became irrecoverable. In his opinion the Income-tax Officer is bound to accept the declaration made by the assessee and if he does not accept it he must prove that that d .....

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..... The wording of the section makes it clear that it is to be established by evidence that the loss took place in the particular year for which the assessment was made. Again rule 37 relating to deductions on account of irrecoverable loans embodies the following direction:- Where an assessment is made of profits or income from a banking or money lending (business, loans which cannot be recovered .....

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..... year, this would be another extreme view to take, but from another passage in the order of Mr. Justice Martineau, it appears that he does not mean this. The passage runs thus.:- In order that the assessee may have the benefit of section 24(1) he must prove not only that he sustained a loss of profits or gains, but that he sustained it in the year in which he claims to have the amount of the los .....

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