1984 (9) TMI 83

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.... of Rs. 9,187. 2. The assessee which is a firm had sold 46 bags of linseed to M/s Roshanlal Harnamdas in 1973 vide bill dt. 21st Aug., 1973. The value of the goods was Rs. 9,187. On receipt of the goods from the assessee M/s Roshanlal Harnamdas sold them to M/s S. O. M. Mill, Muthiganj. The latter party closed the business due to heavy losses and no payment was received by M/s Roshanblal Harnam....

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....idered the submission placed before us. The fact as stated above are not in dispute. There is also no dispute that all the conditions laid down in s. 36(2) of the IT Act have been complied with. The disallowance had been made only on the ground that the amount had actually not become bad in the year under appeal as a suit for its recovery was pending against the debtor. We find that this issue has....

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....ubsequent to write off of the debt had continued legal proceedings did not necessarily lead to the conclusion that the write off was improper or lacked bona fides. The principle laid down in the above case by the Bombay High Court squarely applied to the present case. We have already stated above that M/s S. O. M. Mill, Muthiganj had closed its business due to heavy losses and had not made any pay....