1989 (3) TMI 41

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....siness ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the debt became bad and doubtful during the relevant previous year ?" The question of law relates to the assessment year 1958-59 for which the accounting period was the year ended on March 31, 1958. The dispute involved in the questions before this court pertains to the claim of allowance of a bad debt or loss incurred by the assessee in the course of its business as film distributors in a sum of Rs. 1,61,531. The said amount had been debited in the profit and loss account as being irrecoverable from the producer and director, Sorab Modi of Bombay, and represented advances made for production of two pictures Warts and....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bay High Court restraining the assessee from proceeding with the suit at Calcutta and an injunction was granted. The assessee appealed against the order granting injunction and on November 19, 1954, the order was vacated. Thereafter, the producer applied in the Calcutta High Court for stay of the suit filed by the assessee until the suit in Bombay was decided and the assessee also filed a similar application for stay of the suit in Bombay. Both the applications came to be rejected. Both the parties filed appeals against these orders, the producer on September 18, 1955, and the assessee on September 22, 1955. The Calcutta High Court allowed the appeal of the producer on March 1, 1957, and granted stay of the assessee's suit and dismissed the....