1984 (9) TMI 83

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..... Roshanlal Harnamdas in 1973 vide bill dt. 21st Aug., 1973. The value of the goods was Rs. 9,187. On receipt of the goods from the assessee M/s Roshanlal Harnamdas sold them to M/s S. O. M. Mill, Muthiganj. The latter party closed the business due to heavy losses and no payment was received by M/s Roshanblal Harnamdas. The assessee also, therefore, failed to realise any amount from the latter. 3 .....

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..... There is also no dispute that all the conditions laid down in s. 36(2) of the IT Act have been complied with. The disallowance had been made only on the ground that the amount had actually not become bad in the year under appeal as a suit for its recovery was pending against the debtor. We find that this issue has been considered by the Bombay High Court in the case of Jethabhai Hirji Jethabhai .....

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..... y lead to the conclusion that the write off was improper or lacked bona fides. The principle laid down in the above case by the Bombay High Court squarely applied to the present case. We have already stated above that M/s S. O. M. Mill, Muthiganj had closed its business due to heavy losses and had not made any payment to M/s Roshanlal Harnamdas. The assessee also, therefore, could not receive any .....

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