1934 (6) TMI 28

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....ing year the firm had, under guarantees given by them, been compelled to pay and had paid to the lenders large sums which had been advanced to the limited company, and which the limited company had failed to re-pay. As a result, the limited company became immediately indebted to the firm in a large sum, the share of the appellant therein being the sum of Rs. 1,73,500. It was alleged by the appellate that this indebtedness was irrecoverable from the limited company, and he claimed to have the said sum of Rs. 1,73,500 allowed to him as a reduction in arriving at his assessment to income-tax. It does not seem to have been disputed in India, and it was not disputed before their Lordships' Board, that if this debt of the limited company w....

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....r it is necessary to constitute moneys due by a joint stock company a bad debt or a business loss to the creditor that the company should be actually wound up or have ceased to be a going concern. " In the case as stated the Commissioner expanded this question and added another question dealing with the specific sum in dispute : but the High Court's answer to the reference had ignored the Commissioner's additions. The order of the High Court (dated March 7, 1932), was in the following terms :                " For the reasons stated in the accompanying judgment, the Court answers the Reference by saying that to constitute moneys due by a joint stock company e....