1988 (12) TMI 5

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....receding previous year. The Income-tax Officer's finding was upheld in appeal. At this stage, the assessee requested the Appellate Assistant Commissioner to direct the Income-tax Officer to rectify the assessment for the assessment year 1963-64 under the provisions of section 155(6). The Appellate Assistant Commissioner declined to do so, but observed that the assessee was free to ask the Income-tax Officer to make such a rectification. The assessee so asked. The Income-tax Officer rejected the application. The assessee preferred an appeal to the Appellate Assistant Commissioner. The Appellate Assistant Commissioner analysed the provisions of section 155(6) and directed the Income-tax Officer to make the rectification. The Revenue prefer....

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.... of the year of write off. The Tribunal, accordingly, upheld the Appellate Assistant Commissioner's order. From out of the Tribunal's judgment this question arises "Whether the provisions of section 155(6) have been correctly construed by the Tribunal ?" The relevant portion of section 155(6) of the Income-tax Act reads thus : "Where any such debt or part of debt as is referred to in clause (vii) of subsection (1) of section 36 is written off as irrecoverable in the accounts of the assessee for a previous year and the Income-tax Officer, is satisfied that such debt or part thereof became a bad debt in an earlier previous year not falling beyond a period of four previous years immediately preceding the previous year in which the ....