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TMI Blog2022 (5) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... was not honest nor objective, keeping in view the relevant factors. Therefore, the Tribunal rejected the plea of the assessee and confirmed the order of the Commissioner of Income Tax (Appeals). Whether a debt turned bad is a question of fact, which would clear from the Judgment of the Supreme Court in Travancore Tea Estates Co. Ltd. v. CIT [ 1997 (12) TMI 10 - SC ORDER] wherein held as well settled that whether a debt has become bad or the point of time when it became bad are pure questions of fact We find no reason to interfere with the concurrent findings of the Authorities below inasmuch as whether a debt is bad, being essentially a question of fact. As the appellant has not made out any question of law much less substantial ques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad debt/ trading loss should have been allowed in the light of the observations of the Madras High Court in the case of Devi Films reported in 49 ITR 874 and the Gujarat High Court in the decision reported in 226 ITR 605? 5. Whether the Tribunal was not justified in law in following the Madras High Court decision in South India Surgical Co.Ltd ( 287 ITR 62) when the facts of that case and the facts in the assessee's case did not match at all and therefore that decision does not apply on all fours to the case on hand? 2. The appellant is a practising ophthalmic surgeon in Salem and also derives agricultural income from coffee grown in his lands at Yercaud. His family is also engaged in money lending business. While so, there was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations: ... The very fact that the appellant's mother or the firm have not considered the loan as not recoverable is of considerable significance while evaluating the claim of the appellant.... ...On a careful consideration of the all the aspects of this issue, I agree with the assessing officer that the claim of trade loss or bad debt of Rs.12.50 lakhs relating to the loan advanced to Mani is not well founded..... ... Also, the debtor is having substantial income. In view of the above, the disallowance of Rs.12.50 lakhs is sustained. 4. The matter was carried by way of further appeal by the appellant before the Income Tax Appellate Tribunal. The Tribunal also confirmed the order of the Commissioner of Income Tax (App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... debt has become a bad debt. The same view was taken by the jurisdictional High court in the case of South India Surgical Co. Ltd Vs ACIT ( 287 ITR (62) ( Mad). Hence we decline to accept the plea of the assessee and the claim of bad debt is rejected. We confirm the order of the learned Commissioner of Income-tax( Appeals) and dismiss the appeal filed by the assessee. Aggrieved over the order of the Tribunal, the appellant / assessee filed the present appeal. 5. On 10.11.2009, this appeal was admitted on the following substantial question of law: Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in rejecting the claim of bad debt/ trading loss of the amount advanced by assessee in the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 66 of the Indian Income Tax Act to reappreciate the evidence. As observed by their Lordships of the Privy Council in CITv.S.M. Chitnavis [LR 59 IA 290] in interpreting Section 24 of the Indian Income Tax Act, 1922, Whether a debt is a bad debt, and, if so, at what point of time it became a bad debt, are questions which in their Lordships' view are questions of fact, to be decided in the event of dispute by the appropriate tribunal, and not by the ipse dixit of anyone else. The assessee has no option of declaring a debt as bad . In every case it is a question of fact, to be determined after consideration of all relevant circumstances. 10. In the light of the aforesaid legal proposition, we find no reason to interfere with the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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