1976 (4) TMI 38

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....lowing question has been referred by the Income-tax Appellate Tribunal, Allahabad Bench, Allahabad. " Whether, on the facts and circumstances of the case, the sum of Rs. 44,234 was allowable as a bad debt or as a business loss ? " The assessee claimed a deduction of Rs. 44,234 on account of a bad debt in proceedings for assessment year 1965-66. It was stated that the assessee had advanced a ....

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....ncome-tax Officer did not agree and held that it was in consideration of the full amount of Rs. 5,64,234 that these shares were transferred to the assessee and the difference of Rs. 44,234 between the amount that was actually due from Sri J. P. Srivastava and the face value represents the premium paid by the assessee for acquisition of these shares which is capital payment. Aggrieved by this order....

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....the assessee and recorded the following finding : " After going through the copy of the assessee's accounts with M/s. Anand Ram Pooranmal, M/s. Shital Prasad Shyam Lal, Sardar Ranjit Singh, M/s. Modi Spg. & Wvg. Ltd., etc., Sardool Textiles, Sir J. P. Srivastava, etc., as given in pages 2 to 10 of the paper book and also looking into the interest statement of the assessee for the last five year....