1980 (9) TMI 170

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....e is registered firm. The assessee claimed bad debt of Rs. 6,809 which was disallowed by the ITO. It was the contention of the assessee that the assessee had supplied grains to M/s T.S. Rajgopal. The said firm M/s T.S. Rajagopal did not pay the amount of Rs. 6,500. The firm had filed insolvency petition of No. 12 of 1972 in the Court of Civil Judge, Senior Division, Pune. The said firm acknowledge....

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....Pune and that the said petitioner has acknowledged that the petitioner has to pay an amount of Rs. 6,500 to the assessee. At the time of hearing the appeal, it was stated before me that upto this day the assessee has not been in a position to recover a rupee out of the amount of Rs. 6,500. It may be mentioned that the petitioner had given list of creditors wherein the assessee's name appears on pa....

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....f Rs. 15,000 whereas the liabilities amounted to Rs. 1,25,000. Under these circumstances it was urged by Shri Shah that the assessee's claim may be allowed. Reliance was placed by him on 120 ITR 792. 6. I have gone through the judgment of the Bombay High Court and I find that the observation of the High Court is very useful which is reproduced below: "As to when debt becomes bad depends upon....