1981 (1) TMI 117

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....500 should have been allowed by the ld. CIT(A). 2. The assessee company was incorporated in 1943. The objects of managing agency, selling agency or other agency as a going concern, from any person, firm or company etc. and to act as managing agents, selling agents, agents or brokers and as trustees for any person, firm or company etc. The company was the managing agent of J.K. Manufacturers Ltd....

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....4-75 a total sum of Rs. 3,61,633.84 was assessed as business income. Since the business of Muir Mills Co., Ltd. was taken over by the Government in 1974 the company felt that it would not be in a position to recover anything from the Government. So it wrote off the sum of Rs. 5,32,500 on 30th June, 1975. The amount consisted of the principal of Rs. 4,50,000 and interest of Rs. 82,500. 3. The IT....

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....e ld. CIT (A) observed that as such a claim was not made before the IAC and as he had no occasion to go into this aspect of the issue, the admission of the new ground by him would not be reasonable. He then examined the assessee's claim under s. 36 and held that the money was not advanced during the course of money-lending. He also held that as the money was secured against machinery and other ass....

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....ferred to a letter dt. 16th Feb., 1979 from the Ministry of Industries where there was a categorical statement that as the amount placed at the disposal of the Commr. of Payments for payment to the owners of Muir Mills Co. Ltd. had been completely exhausted by meeting the demands under category if the assessee's claim could not be considered. Having regard to these facts he said that the assessee'....