1989 (1) TMI 16

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....pplication by the Commissioner of Income tax under section 256(2) of the Income-tax Act, 1961, for directing the Tribunal to draw up a statement of case and refer the following question of law for the opinion of this court: "Whether the Tribunal was correct in law in allowing deduction on account of bad debt (Rs. 41,006) in view of the condition laid down in section 36(2)(i) (a) having not been....

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....ry of the amounts. On appeal by the assessee, the Appellate Assistant Commissioner wrote off the amount as a bad debt. The Income-tax Appellate Tribunal noticed that in the beginning of the year, the assessee had considered the amount good because filing of a suit was contemplated. However, after receipt of the legal opinion, the idea of filing a suit was given up. Further, even though legal....