Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 1936 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1936 (2) TMI 20 - HC - Income TaxWhether the debt of A. Somasundaram Pillai written off as an irrecoverable loan in the year of account is not liable to be deducted from the assessee's income for the year ? Held that:- Pillai's inability to meet his share of the loss was just as hopeless by the end of March 1930 as at any later time. The appellant's return for the year 1930-31 did not have to be rendered until months after March 1930, and if he filled in time by making entries in his books at the beginning and end of the year 1930-31, that delay does not entitle him to choose the next year for his claim to a set off. From before the moment at which this debt was transferred from the cotton business it was altogether bad and its badness was the reason of the transfer. It cannot, therefore be considered as a bad debt made by the appellant in the course of money-lending and still less can it be considered as becoming bad in the year of account, hence the process by which the transfer is made on the first day of the year 1930-31 and cancelled as a bad debt upon the last day of that year is of no avail to the appellant. Appeal dismissed.
|