1984 (3) TMI 180

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....iod relevant for the asst. yr. 1977-78 and a sum of Rs. 14,062 was the outstanding amount since the asst. yr. 1978-79. It was submitted that the firm M/s Maheshwari & Co., discontinued its business, one of its partners died and, hence, there were no chances of recovery and not only the assessee but various other parties also had to write-off the amounts outstanding against M/s Maheshwari & Co. The ITO did not accept the assessee's contention. He found that one of debtors of M/s Maheshwari & Co., filed a suit in the Civil Court but the said suit was not contested. He also found that there was not evidence to show that the assessee made any efforts to recover the outstanding debt. On these facts, the ITO disallowed the assessee's claim of bad....

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.... its debts amounting to Rs. 1,01,712 but this suit was dismissed vide judgment of the Civil Judge on account of non-compliance on behalf of the plaintiff. This only leads one to believe that M/s Maheshwari & Co., and M/s Nutan Trading Co., had entered into some sort of amicable settlement and that is why the suitor was not inclined to press the suit resulting into its dismissal on account of non-compliance. In the circumstances, I am of the opinion that the ITO was justified in disallowing the claim and, therefore, I decline to interfere." Aggrieved by the above findings, the assessee has come up in the present appeal. 4. Before me, the ld. counsel of the assessee submitted that on 9th July, 1979 a registered notice was issued by the asse....