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TMI Blog1988 (11) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... oncerns the writing off of an unpaid debt. The assessee-firm, Daya Chand Hardial, Amritsar, as selling agents of Delhi Cloth and General Mills Ltd., sold goods on credit to Hari Ram Bhagat Ram. According to the copy of the account of this party in the books of the assessee-firm filed before the Income-tax Officer, at the end of the accounting year on June 30, 1972, there was a debit balance of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year 1976-77 was turned down by the order of the Income-tax Officer of November 16, 1976. The appeal against it was also dismissed by the Appellate Assistant Commissioner on March 19, 1977. The Tribunal, however, by its order of October 30, 1978, allowed the claim treating it as a business loss or alternatively as business expenditure. The following question of law arose for decision : "Whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , when Hari Ram Bhagat Ram did not pay back the said amount, this liability fell upon the assessee. The business of the assessee being that of selling of cloth of Delhi Cloth and General Mills Ltd., the Tribunal rightly treated this amount to be a business loss or alter natively as business expenditure for earning commission income. The reference is, accordingly, answered in favour of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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