TaxTMI 
TaxTMI 
1982 (10) TMI 5
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....VARGIYA J.-By this reference under s. 256(1) of the I.T. Act, 1961 (for short " the Act "), the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following question of law for the opinion of this court: "Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the assessee could not be allowed the amount of Rs. 20,390 as his revenue loss du....
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.... M/s. Jhamaklal Juharmal was first brought to batau khata. Thereafter, it was shown to have come to an end in the books of the dissolved firm and taken over by Sagarmal. The assessee continued to show these amounts due against Sagarmal Fatehchand which were ultimately written off during the assessment year in question. The ITO held that this amount could not be allowed as a remission of bad deb....
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....its. It was not a loan as understood in common parlance because the lender was not entitled to any interest thereon. Therefore, if at all, it was a loss of capital. The loss was also not covered by s. 45 of the Act for the purpose of being carried forward. The AAC, therefore, dismissed the appeal of the assessee. The further appeal by the assessee to the Appellate Tribunal was also dismissed. The ....
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....represented the capital contributed to the firm as a result of which the assessee became entitled to the share of profits, and that, if at all, it was a capital loss. The finding recorded by the AAC has been confirmed by the Appellate Tribunal. On this finding the Tribunal was fully justified in holding that the assessee could not be allowed the said amount as his revenue loss during the assess....