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TMI Blog1984 (6) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... nt previous year. The matter reached up to the Tribunal. The Tribunal allowed the claim regarding Usha Spg. Wvg. Mills. Ltd., but rejected the claim with regard to the other three parties. 2. In the meantime the assessment for the assessment year 1973-74 was taken up. The ITO did not consider the claim of the assessee in this year. The assessee also did not approach the ITO for any such claim as at that time its appeal for the assessment year 1972-73 itself was pending. After the receipt of the order of the Tribunal dated 20-6-1979, the assessee approached the ITO under section 154 of the Income-tax Act, 1961 (' the Act ') requesting him to allow the claim in the assessment year 1973-74. The ITO rejected the claim on the ground that it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... already been written off as irrecoverable in the accounts of an earlier previous year, but the ITO had not allowed it to be deducted on the ground that it had not been established to have become a bad debt in that year. Clause (iv) of section 36(2) lays down that where any such debt or part of debt is written off as irrecoverable in the accounts of the previous year and the ITO is satisfied that such debt or part became a bad debt in any earlier previous year not falling beyond a period of four previous years immediately preceding the previous year in which such debt or part is written off, the provisions of sub-section (6) of section 155 of the Act shall apply. Sub-section (6) of section 155 states that for the purpose of such deduction, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax by Sampath Iyengar, 7th edn., Vol. 2, have also dealt with this question in the commentary. We quote below their observations as under : " Clause (iii) deals with the situation where the assessee write off a debt but the same is not allowed as a deduction on the ground that it has not become bad in that year and that the claim is premature. In such an event, it enables the assessee to claim and oblige the officer to allow a deduction for the debt in such year as it is accepted to have become bad. This can be done without difficulty if the assessment for such subsequent year is pending either before the officer or an appellate authority at the point of time when such finding is given. However, in case the assessment has been completed b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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