1989 (9) TMI 43

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....sed in this reference is "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the interest income amounting to Rs. 2,85,495 taxed on accrual basis and subsequently written off as bad debt is an admissible deduction under the head 'Income from other sources' ?" The assessee is a company. Proceedings relate to the assessment year 1970-71. The a....

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....st from the Corporation is income from "other sources" assessed on accrual basis and there being no provision in sections 66 to 59 for allowance of "bad debt" as such, the claim had to be disallowed. For this very reason, the Appellate Assistant Commissioner confirmed the disallowance. On further appeal by the assessee, the Tribunal held that the claim was allowable as interest income was taxed as....

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....he Income-tax Officer, the Appellate Assistant Commissioner and the Tribunal. The Tribunal has certainly not recorded any finding that the assessee was assessed in respect of interest income during the year of accrual as "income from other sources". The Tribunal, as is evident from its order, allowed the claim of bad debt on the footing that the amount in question was taxed as business income. It,....