9911796707
TMI Blog1981 (1) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in 1943. The objects of managing agency, selling agency or other agency as a going concern, from any person, firm or company etc. and to act as managing agents, selling agents, agents or brokers and as trustees for any person, firm or company etc. The company was the managing agent of J.K. Manufacturers Ltd. from 1st Oct., 1943 to 15th Aug., 1965 and of J.K. Iron Steel Co., Ltd. from 1st Nov. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Muir Mills Co., Ltd. was taken over by the Government in 1974 the company felt that it would not be in a position to recover anything from the Government. So it wrote off the sum of Rs. 5,32,500 on 30th June, 1975. The amount consisted of the principal of Rs. 4,50,000 and interest of Rs. 82,500. 3. The ITO held that the assessee claimed the write-off of Rs. 5,32,500 as bad debt but the condit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... occasion to go into this aspect of the issue, the admission of the new ground by him would not be reasonable. He then examined the assessee's claim under s. 36 and held that the money was not advanced during the course of money-lending. He also held that as the money was secured against machinery and other assets of Muir Mills Co. Ltd. the assessee could not claim that the debt had become bad. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... categorical statement that as the amount placed at the disposal of the Commr. of Payments for payment to the owners of Muir Mills Co. Ltd. had been completely exhausted by meeting the demands under category if the assessee's claim could not be considered. Having regard to these facts he said that the assessee's claim should have been allowed under s. 28. In the alternative, it was pleaded that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been brushed aside by the ld. CIT (A). We also feel that he has to examine further the question regarding the date on which the debt became bad in view of the letter from the Ministry of Industries. We, therefore, deem it fit to set aside the order of the ld. CIT (A). We accordingly set aside his order and restore the appeal to him for fresh disposal according to law. 7. The assessee's appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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