TaxTMI 
TaxTMI 
1986 (6) TMI 82
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....jan has contended that the debts had not become bad and that in any case since the amounts had not been written off as irrecoverable in the accounts of the assessee, the disallowance made by the ITO was justified and that the CIT(A) had no justification in deleting the disallowance. In support of her contentions reliance has been placed on the decisions reported in CIT vs. Khemchand Bahadurchand (1981) 25 CTR (P&H) 359 : (1982) 134 ITR 65 (P&H) and V.N. Rajan m Co. vs. CIT (1983) 142 ITR 545 (Cal). As the decision regards in the case of CIT vs. Jwala Prasad Tiwari (1953) 24 ITR 537 (Bom) on which reliance was placed by the CIT(A), the ld. Departmental Representatives submits that the decision was not applicable under the provisions of 1961 ....
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....jarat High Courts respectively reported in (1953) 24 ITR 537 (Bom) and Vithal Das H. Bhoujibhai Bandanwala vs. CIT (1981) 21 CTR (Guj) 190 : (1981) 130 ITR 95 (Guj). As far as the finding of the CIT(A) regarding the 'Vyopari Expenses' is concerned, the ld. Authorised counsel of the assessee has supported the order of the authority of a decision of the Tribunal, Delhi Bench-A in ITA No. 3118/Del/82 decided on 7th Jan., 1984. It is the case of the assessee that the expenditure incurred by the assessee not only included the food and beverages provided to the employees but also included expenditure incurred on provision of human courtesy not amounting to hospitality. In support of the cross objection filed by the assessee, the ld. authorised co....
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....o debtors which had failed, it cannot be said that the two amounts had not become bad debts. As far as the compliance of the provisions of s. 36(2) of the Act is concerned, we would agree with the representation made on the side of the assessee that the entries made in the profit and loss account and in the suspense account amounted to writing off the debts as irrecoverable. The decisions of the Hon'ble Bombay and Gujarat High Courts respectively reported in (1953) 24 ITR 537 (Bom) and (1981) 130 ITR 95 (Guj) squarely support the case of the assessee. In the latter decision which is of the Hon'ble Gujarat High Court it has been held by their Lordships that the decision of the Hon'ble Bombay High Court in the case of CIT vs. Jwala Frasad Tew....