1993 (3) TMI 172

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....unsel for the assessee. It is, therefore, dismissed. 2. Next objection of the assessee is regarding disallowance of a claim of bad debts of Rs. 37,616 against one M/s Rameshwar Pd. Amodkumar, Kota. The assessee has filed copies of account of that party and pointed out that the assessee has regular trading transactions with that party. Assessee's accounting year is Dewali Year and was between 4t....

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....ainst that party or to settle that amount for whatever assessee could realise. As per a copy of agreement written on the letter-head of that party dt. 22nd Oct., 1984, the assessee exercised its commercial expediency and agreed to settle the account by receiving a post-dated cheque of Rs. 34,072 from another party, namely, M/s Mathuralal Rajendra Kumar on the condition that the assessee would writ....

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....bt having become bad. Merely because that party has not written off the credit balance in its books of account or it was still carrying on its business, which fact was denied before us by assessee's counsel and it was claimed that party has started service with some firm, would not disentitle the assessee from writing off the debt as bad. In any case there is always a provision that if and when th....