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TMI Blog1976 (4) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... ing business or a deduction as bad debt, is challenged. 2. The assessee is an individual and he is the son of Shri. Y. Chettier, who was connected with a number of textile mills. During the assessment year 1972-73, the assessee had advanced various amounts to a number of mills and such advances carried interest ranging from 8-1/4% to 12% per annum. The assessee, in all, had income from interest f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ending business and allowed it under s.28 of the Act. He also pointed out that the assessee, as a prudent business man tried to salvage as much as possible by getting some amount and the loss is admissible as a bad debt under s.36 (1)(vii) of the Act. As against such findings, the revenue is in appeal. 3. The learned departmental representative urged before us that the transactions of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In respect of his advances to Pudukotta Textile Mills, in view of the financial difficulties of that company, the assessee had to assign this asset to a person who took over the mills at a loss. It cannot be stated that the assessee, who knew the position of the mill had advanced monies only by way of investment. Perhaps, as his father was managing this mill, and to meet the funds, of the day-to - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unnecessary to go into the question whether the loss could be allowed as a bad debt. The assessee had advanced this amount in the course of his regular business in money-lending and as the entire debtor mill was taken over by another, the assessee had to assign this asset also and incurred a loss. This can also be treated as a bad debt. However, we need not go into this issue in detail. 6. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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