1997 (11) TMI 8

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.... a textile mill manufacturing yarn. For the assessment year 1964-65, the relevant accounting year ended on March 31, 1964, the assessee-company returned an income of Rs. 2,53,368. The assessee, in the assessment proceedings, claimed a deduction towards bad debts in the name of Vijayakumar Cotton Press and another, totalling to Rs. 1,37,760. The Income-tax Officer disallowed the claim on the ground....

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.... : "Whether, on the facts and in the circumstances, of the case, the Tribunal is justified in not allowing the claim of the assessee for deduction of Rs. 1,37,760 or any part thereof either as bad debts or as trading loss?" It is relevant to notice that with reference to the same advance in the case of the same assessee, the matter came up for consideration before this court earlier in Vijay....

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....ct conclusion in holding that the amounts are not liable to be deducted as business debts either as bad debts or trading losses as the advances were not made for the business purposes of the assessee. The Tribunal was correct in upholding the addition made by the Income-tax Officer of a sum of Rs. 1,37,360 as the assessee's income. The finding of the Tribunal was arrived at on the basis of the mat....