TaxTMI 
TaxTMI 
1988 (2) TMI 103
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....d that he has erred in confirming the order of the ITO of disallowing the claim of bad debt amounting to Rs. 1,31,471. 2. The learned counsel, Shri F.P. Irani, took us through the facts and the relevant items pertaining to the bad debts in question. He has pointed out that the claim of bad debts are of the two parties as below: (1) M/s Kamani Bros. Pvt. Ltd. Rs. 51,268 (2) M/s Kes Bros....
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....sed a dispute about the defective quality of the goods supplied by the assessee-firm to it as per page. 11. The assessee-firm's Advocate gave a legal notice of recovery to M/s Kamani Bros. Pvt. Ltd. by notice dt.15th Dec., 1977. The notice of motion was taken out. Kamani Bros. settled the petition and agreed to pay the amount by instalments of Rs. 5,000 per month. However, they did not pay. The....
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....erely on the reason that this does not pertain to the relevant accounting year or the assessee did not make any sincere effort for the recovery of the same. 4. From the above narrated facts, it cannot be said that the assessee-firm has not made any sincere efforts to recover the amount from Kamani Bros. Pvt. Ltd. The assessee-firm has made the efforts to recover the amount even prior to the exp....
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....ue could not be honoured. Nothing was recovered till 27th Aug., 1979. The suit to recover this amount was filed in the High Court of Bombay. The High Court did not decide the suit earlier and the assessee written off the debt. The ITO treated it as premature writing off of the debt. According to the ITO, the assessee is not entitled to write off his claim as a bad debt. The ITO also held a view th....