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TMI Blog1989 (1) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... age of tenanted property belonging to the said T. S. Malik which was situated at Mulund. The said borrower paid interest from time to time which interest income had been returned by the assessee in the relevant years. The said borrower expired in 1975. His widow and sons repaid a sum of Rs 13,500 m February, 1976 leaving a balance of Rs. 16,500 due and payable. The principal amount with interest u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount together with the interest as irrevocable and bad debt. According to the assessee the period of limitation for recovery of mortgage debt under Limitation Act, 1963 was 12 years from the due date. In the present case, due date was 29th Nov., 1967. Consequently, the period of limitation expired on 29th Nov., 1979 i.e. during the year under assessment. the assessee claimed the same as bad debt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erved that since the assessee was not doing any money lending business the amount in question cannot be allowed as deduction either as bad debt or as capital loss. He, accordingly, confirmed the rejection of the claim. The assessee is now in further appeal before us and ground No. 1 relates to this item of Rs. 16,500. 2. we have heard the parties. We find that it was not the submission of the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there was a casual connection existed between the extinguishment of rights in capital assets and the amounts received and that the said extinguishment was supported by consideration in this fielding, the loss was held allowable as capital loss. The facts of our case are entirely different and the principle laid down in said decision is not applicable. 3. The ITO disallowed Rs. 1,000 out of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,851 which should by taken into account in determining the cost of acquisition of the premises in question. One of the items is donation to the society which was necessary to be given in order to acquire the premises. The other amounts which are mentioned in the table were necessary to he spent for acquiring the premises. Consequently, we set aside the order of the AAC and direct the ITO to adopt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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