1983 (10) TMI 72

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..... debt of Rs. 3289 which had become irrecoverable from Samrathlal Chemaji of Tadpatri. 2. The facts briefly stated are as follows: The appellant was dealing in cloth on wholesale basis. During the course of business the appellant had sold cloth to the debtor. Efforts to recover, the dues from the party failed. The appellant, therefore, wrote off Rs. 3289 as irrecoverable by debiting the same t .....

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..... ect of the debtor through some known party, namely Shri Virchand Hinduji of Tadpatri, Andhra Pradesh the reply was received by letter dt. 13th December 1974 which reads as under: "Please accept my salam. Received your letter. Learnt that your dues are outstanding from Samratmalji Senaji of Tadpatri. You wrote us to recover the dues from him. It is alright but there is no such party here. Wherea .....

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..... ut the claim is also justifiably proved. The assessee is a dealer in cloth on wholesale basis and usually the type of business requires sales of goods through transport to far off places all over India. It is also a custom in the trade that the goods are usually sold on credit and not on cash basis. Therefore, the trader is usually at the mercy of the client who is at a distant place and especiall .....

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