1994 (11) TMI 164

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....allowance of claim of bad debts of Rs. 67,226 in the account of M/s Gian Chand Amir Chand. The assessee-firm filed its return of income for asst. yr. 1986-87 on 30th July, 1986. At that time, no claim on account of bad debts was made by the assessee. During the course of assessment proceedings, however, the assessee made a claim of bad debt of Rs. 67,226 in the account of M/s Gian Chand Amrit Chan....

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....stion had not been written off in the year relevant to the asst. yr. 1986-87 it was not allowable as a deduction. She further directed the Assessing Officer to allow this in the year in which the bad debt is written off. 4. Shri Hari Om Arora, the learned counsel for the assessee, submitted that this claim of the assessee had not been allowed for asst. yr. 1986-87 because it had not been writte....

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....inted out that where any such debit or part thereof is written off as irrecoverable in the accounts of the previous year and the Assessing Officer is satisfied that such debt or part thereof became bad in any earlier previous year, then the provisions of s. 155(6) shall be applicable. It was, therefore, argued that even if the amount was actually written off in the subsequent year but the debt had....