TMI Blog2010 (8) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... ADARSH KUMAR GOEL and AJAY KUMAR MITTAL, JJ. Judgment: Ajay Kumar Mittal J.- This appeal under section 260A of the Income tax Act, 1961 for short "the Act" has been filed by the assessee against the order dated September 10, 2004, passed by the Income-tax Appellate Tribunal, Chandigarh Bench "B", Chandigarh in short "the Tribunal" in I.T. A. No. 395/Chandi/2000, for the assessment year 1990-91. 2. This appeal was admitted for determination of the following substantial question of law :" Whether under the facts and circumstances of the case the Tribunal was justified in law by not allowing the deduction of Rs.3,50,000 under section 28 as business loss or under section 36 as bad debt against the said amount added as inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer in compliance with the directions of the Com-missioner of Income-tax (Appeals) again recorded the statement of the assessee on January 22, 1999, and treated the sum of Rs. 3,50,000 to be the income of the assessee, vide fresh assessment order dated annexure A. 5. The assessee preferred appeal before the Commissioner of Income-tax (Appeals) and raised submissions with full might but the Commissioner of Income-tax (Appeals) agreed with the conclusion arrived at by the Assess-ing Officer and dismissed the appeal of the assessee, vide order datedFebruary 16, 2000. 6. The appellant still did not stay back and carried the matter in further appeal before the Tribunal. The submissions raised on behalf of the asses-see before the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rch 9, 1990, March 13, 1990 and March 19, 1990, and whereas the assessee had claimed these drafts to be bad debt in the year ending March 31, 1990. The appellant had not been able to produce any evidence to substantiate that the same had become bad debt on the said date within a span of 22 days. Equally the assessee had failed to refer to any material on record to show that he had incurred business loss on account of these demand drafts which were added to his income under section 69 of the Act. The relevant findings recorded by the Tribunal in paragraph 11 of its order are as under : "We have heard both the parties and carefully considered the material available on record. One of the claims of the assessee was that the amount given by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the financial year on March 9, 1990, March 13, 1990 and March 19, 1990 would become bad within a span of less than 22 days on March 31, 1990. Moreover, the assessee had not produced any evidence that the amount in question in fact became bad debt. As regards the contention of the learned counsel for the assessee that this amount should be considered as business loss or capital loss it is noticed that the assessee nowhere stated that the amount in question was used for the business purpose rather it was stated that the assessee was not having any business link with Shri Krishan Kumar Sharma in whose name the impugned drafts were purchased. The Assessing Officer made the addition on account of undisclosed investment in the drafts and since ..... X X X X Extracts X X X X X X X X Extracts X X X X
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