1981 (1) TMI 117

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....T(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. from 1st Oct., 1943 to 15th Aug., 1965 an....

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....essed 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 ITO held that the assessee claimed the write-o....

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....as 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 assets of Muir Mills Co. Ltd. the assessee could....

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....e 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's claim should have been allowed under s. 28. ....