TaxTMI 
TaxTMI 
TaxTMI 
1983 (1) TMI 152
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.... bad debt. A fire broke out in the business premises of the assessee, who was a dealer in Khal. Then, substantial stock was burnt in the fire. The goods were insured against fire with Ruby General Insurance Co., and British India General Insurance Company. The assessee therefore, lodged the claim with the companies. The surveyors assessed the loss at Rs. 3,88,000, which was apportioned as follows:....
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....ting the claim against the British India General Insurance Company. It is under these circumstances, the assessee had written off a sum of Rs. 65,818 (Rs.1,05,818-Rs.40,000). The authorities below rejected the claim of the assessee on the ground that no business was carried on by the assessee during the year under appeal and that the amount was not rightly written off by the assessee. Undisputed f....
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....be doubted, but in the case of an old assessee even a single transaction establishes the continuity of the business. Moreover, the law does not require that for the purposes of writing off, the business must have been carried on in a full swing in the year in which the bad debt was written off. The AAC rejected the claim of the assessee on the ground that no suit was filed against the Ruby General....