1985 (7) TMI 60

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..... iness dealings with M/s. Laxmi Narain Cotton Mills Ltd., Calcutta. During the assessment year 1970-71, the assessee effected sales to the cotton mills to the tune of Rs. 2,91,748. Out of the sale price, Rs. 1,97,372 had been paid through cheques by the cotton mills on various dates between April 23, 1969, and November 4, 1969. Out of the cheques, one cheque of Rs. 12,000 was dishonoured with the r .....

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..... bt after recording a finding on appreciation of facts of the case that a reasonable inference can be drawn that it has become difficult or impossible to recover the said amount from the cotton mills. It was also held that it was legally impossible for the assessee to recover its dues from the cotton mills as the mills had been taken over as a sick textile undertaking under the Sick Textile Underta .....

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..... ises in this case. Out of Rs. 1,06,375, a sum of Rs. 75,000 was claimed as a bad debt from the cotton mills, which became a sick textile undertaking and was taken over as such under the Sick Textile Undertakings (Nationalisation) Act, 1974. The Tribunal has recorded a finding on consideration of the facts on record that they reasonably point to an inference that, having regard to the circumstances .....

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