1977 (10) TMI 53

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....irst grievance is against the debt amounting to Rs. 2,281. The lower authorities disallowed this claim of the assessee on the ground that the same related to discontinued business and that details of the claim could not be produced. 3. Before us, the learned Counsel for the assessee contended that the cloth business was not discontinued but it remained temporarily suspended due to litigation an....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uestion the assessee was under the impression that they might be recovered. According to him the assessee finally came to know during the year under appeal that there was no possibility of realisation of the debts and, therefore, the claim of the assessee was permissible-deduction during the year under appeal. 4. The learned Deplt., Rep. on the other hand supporting the orders of the lower auth....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ext year was not controverted by the learned Deplt., Rep. The assessee also claimed deduction on account of legal expenses which were stated to have been incurred for conducting Court cases against the debtors in respect of the cloth business. All these facts go to suggest that the assessee's cloth business had not been discontinued but remained suspended temporarily. From the details of the debts....