9911796707
TMI Blog1978 (8) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... s also supplying cotton to M/s. Seksaria Cotton Mills Ltd., Bombay. On 7th April, 1967, it advanced a sum of rupees three lakhs to M/s. Seksaria Cotton Mills Ltd. at 12% per annum interest. For the assessment year 1969-70 (the relevant accounting period ending on 30th September, 1968), the assessee claimed a deduction of Rs. 1,50,000 on the ground that the debt given to M/s. Seksaria Cotton Mills ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then by way of abundant precaution only 50% of the debt was written off as bad during the relevant previous year.... On the facts stated above, I hold that the assessee had money-lending business and I further hold that the debt had become bad during the relevant previous years. Consequently, I come to a finding that the assessee was entitled to deduction of Rs. 1,50,000 being the amount of part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r discussing the scheme in detail the Tribunal came to the conclusion that there was a clear possibility of realization of debt and that there was still a ray of hope that the debt may be realised. On the issue, it held that it cannot be said that the debt had become irrecoverable and so bad. It consequently allowed the appeal. At the instance of the assessee, the Tribunal referred the following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 971, sent by the assessee to the ITO, it has been mentioned that the scheme was ultimately not adopted, as there was little chance of making any recovery under it. This letter was annexed to the statement of the case, but the Tribunal did not advert to it. If the scheme had not been adopted, as is apparent from the material on the record, it could not be a material relevant for considering that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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