9911796707
TMI Blog1974 (12) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... ides are agreed that that question is concluded, at any rate as far as this court is concerned, by two decisions of this court,the first being its decision in the case of CIT v. Mogul Line Ltd. [1962] 46 ITR 590 at pp. 598-600 (Bom) and the other being its decision in the case of CIT v. Mehboob Productions Pvt. Ltd. [1969] 74 ITR 676 at pp. 685-686 (Bom). Question No. I referred to us must, therefore, be answered against the assessee. As far as questions Nos. 2 and 3 are concerned, both of them relate to the sum of Rs. 62,078 due to the assessee-company from another private limited company, viz, March Private Ltd., and the only question which arises in regard to the same is whether, on the material before the Tribunal, any reasonable pers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iting it off in the assessment year in question. The court should, therefore, take it that it had become a bad debt in the year in which it was written off by the assessee. In support of that proposition Mr. Vyas relied on the decision of this court in the case of Lord's Dairy Farm Ltd. v. CIT (1955] 27 ITR 700 at p. 708, but that case cannot help Mr. Vyas for what it lays down is that it is only " in the absence of any evidence " that the court is entitled to presume that the amount became irrecoverable when the assessee wrote it off in its books of account. (3) The assessee reasonably took a decision to write it off in the assessment year in ques. tion in view of the Registrar's letter dated 28th February, 1958, proposing to take action f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors of March Private Ltd. to restart business was never more than pious hopes for the entertaining of which there was no basis at all. The minutes of the board of directors of March Private Ltd. held on 20th December, 1950, show that all that the chairman stated at the meeting was that he was confident that he would be able to find a suitable editor to resume the publication. The minutes of the meeting of the board of directors held on 20th December, 1954, contained only " a hope " on the part of the chairman that a suitable party would be found to do the publishing business, and the minutes of the meeting of the board of directors of March Private Ltd. held on 25th June, 1955, also contained a statement by the chairman couched in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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