1985 (7) TMI 25

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....estion referred to this court by the Incometax Appellate Tribunal, Cochin Bench, reads as follows: " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law having regard to the provisions of section 36(2) of the Income-tax Act, 1961, in directing allowance to the extent of Rs. 11,512 of debts which the assessee had claimed had become bad ? " Till February 1....

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....n appeal, declined to grant the directions sought. The Tribunal allowed the deduction holding that it was a case of reconstitution of the existing firm and also that it was a case of bad debts. The counsel for the Revenue submitted that there was no firm to be continued after all the majors retired on February 1, 1974. We do not find any case for the Revenue that either the firm which existed f....

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....reject the contention of the petitioner that there was no continuation of the firm. One other point pressed by the counsel for the Revenue is that one alone could not constitute a firm. In support of the contention, the decision in Dahi Laxmi Dal Factory v. ITO [1976] 103 ITR 517 (All) [FB] was cited. We do not think it necessary to go into the details of this decision. The stand taken by the a....