1982 (2) TMI 107

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..... sment of the assessee for 1976-77. The corresponding previous year is the calendar year 1975. The bad debt arose in the account of Jaifabs Rayon Industries (P.) Ltd. The case of the department is that the claim is premature. 2. The assessee sold goods to the debtor in 1974. Cheques received from the debtor were not realised. Jaifabs Textile Mills (P.) Ltd. took over Jaifabs Rayon Industries (P.) .....

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..... any would be in a position to pay off all its creditors in full with interest within a period of some years only. The said payment would be made by the Company out of its profits." 4. The assessee wrote in the past repeatedly to the liquidator but was given to understand that there was no possibility of making payment to unsecured creditors of the company "in near future". A similar reply was re .....

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..... ion, they merely indicate a cautious use of language employed in circumstances like the circumstances of the case under consideration. Whether a debt has become bad or not at a particular stage has to be decided having regard to the overall facts and circumstances. It may not be without significance that even after noticing the expressions used about, the departmental authorities have not allowed .....

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