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2002 (11) TMI 78 - HC - Income TaxAssessee claimed bad debt - in our case, the assessee as a member of the association, wrote letters to the Central Government seeking redressal. The Central Government has rejected their application. Further, in our case, for the same assessment year, the Tribunal has allowed the claim of the sister concern of the assessee under section 36(1)(vii). Lastly, section 8(1)(c) of the Ordinance indicates that no proceedings for winding-up/appointment of the liquidator or the receiver could lie without the consent of the Government. The reply of the Central Government to the representation made by the assessee shows that the Government would not have given consent for recovery of the amount by way of winding up proceedings. One has to look at the problem from the point of view of a prudent businessman. In this case, there is ample material on record to show that there was no possibility of recovering the amounts from the said two mills. There was also no possibility of the Government consenting to the liquidation of the two mills. - For the above reasons, the assessee succeeds
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