TaxTMI 
TaxTMI 
1983 (12) TMI 95
X X X X Extracts X X X X
X X X X Extracts X X X X
....mbine, for the asst. yr. 1979-80 is contested on the following grounds: (1) On the facts and in the circumstances of the case and in law, the learned CIT (A) erred in directing the ITO to allow the assessee's claim for deduction of an amount of Rs. 14,000 as bad debt, whereas this amount is neither a bad debt nor a business loss. (2) Without prejudice to ground No. 1 above, it is submitted t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s letter dt. 1st January, 1974. The ITO, therefore, held that since the amount represented a loan and the assessee was not doing money-lending business, the claim of the said amount as "bad debt" could not be accepted in view of the specific provisions of s. 36(2)(i)(a) of the IT Act. On this reasoning, the ITO disallowed the claim. 3. On appeal, the CIT (Appeals) accepted the contention on beh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ors for recovery. He found that the police authorities had registered the complaint of the assessee against Shri Ibrahim Rokhandawala of M/s Regal Iron Supplying Co. for cheating. From these facts, the CIT (Appeals) came to the conclusion that the company had dealings with the aforesaid concern and advance was given for purely business considerations and, therefore, there was every justification f....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in question was outstanding against the party concerned, i.e. Regal Iron Supplying Co., only as a loan. He pointed out that even a cursory glance at the ledger account in the name of said Regal Iron supplying Co. In the books of the assessee for the accounting years relevant to the asst. yrs. 1972-73, 1973-74 and 1974-75 would show that there were regular transactions between the assessee and the....