1977 (10) TMI 53

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..... mounting to Rs. 2,281. The lower authorities disallowed this claim of the assessee on the ground that the same related to discontinued business and that details of the claim could not be produced. 3. Before us, the learned Counsel for the assessee contended that the cloth business was not discontinued but it remained temporarily suspended due to litigation and was restarted again in the next yea .....

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..... pression that they might be recovered. According to him the assessee finally came to know during the year under appeal that there was no possibility of realisation of the debts and, therefore, the claim of the assessee was permissible-deduction during the year under appeal. 4. The learned Deplt., Rep. on the other hand supporting the orders of the lower authorities pointed out that during the ye .....

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..... arned Deplt., Rep. The assessee also claimed deduction on account of legal expenses which were stated to have been incurred for conducting Court cases against the debtors in respect of the cloth business. All these facts go to suggest that the assessee's cloth business had not been discontinued but remained suspended temporarily. From the details of the debts as also from the fact of conducting Co .....

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