9911796707
TMI Blog1983 (7) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... he ITO and the appellate authority did not accept that claim, holding that the claim of the assessee was premature and the said debt became bad only in the assessment year 1975-76 and it could not be claimed as a deduction in the year 1974-75. When the matter was taken to the Income-tax Appellate Tribunal, the Tribunal took the view that admittedly the four mills, from which the trade debts of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n there is no evidence to support it? " It is the admitted case of both parties that the debts due to the assessee from four sick mills, namely, Parvathi Mills Ltd., Vijaya Mohini Mills Ltd., Sri Sarada Mills Ltd. and Kerala Lakshmi Mills Ltd., became bad and irrecoverable. The question is when the said debts became bad and doubtful, whether it is in the assessment year 1974-75 or in the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he debt as on April I, 1974, the assessee is entitled to treat the debt as having become bad and irrecoverable on the previous day, namely, March 31, 1974, and to write off the debt in the assessment year 1974-75. Therefore, on the facts found by the Tribunal, the conclusion of the Tribunal appears to be right and there is no justification for directing a reference in this case. Hence, this tax ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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