TMI Blog2015 (10) TMI 1382X X X X Extracts X X X X X X X X Extracts X X X X ..... l the parties, except "Smooth Sky Tours Pvt Ltd" shows that they are also in chemical business. Under these circumstances, in our view, there is some merit in the contention of the assessee that they are trade debtors. The very fact that these amounts are outstanding since 1997-98 (almost 10 years old) would show that the assessee had cut off the relationship with them and in this peculiar circumstance, one cannot expect that the above said parties would co-operate with the assessee. In the case of Smooth Sky Tours Pvt Ltd, the submission of the assessee is hard to accept, since the name of the above said party shows the nature of business carried on by it and hence he could not have been in the chemical business. The submission made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amount (Rs.) Outstanding since 01 Rinku Dye Chem P Ltd. 60,000 1997-98 02 Hardeep Lifters (Acetone) 25,000 1997-98 03 Pefco Ind. Ltd 10,000 1997-98 04 Royalchem Products 10,000 1997-98 05 Search Chem Industries Ltd 8,602 2002-03 06 The Mysore Paper Mills Ltd 10,000 1997-98 07 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowable u/s 37(1) of the Act as trading loss. 5. The Ld CIT(A) was not convinced with the explanations of the assessee and hence confirmed the disallowance on the reasoning that the assessee has failed to show the nature of transactions entered with the above said parties and further failed to prove that they were offered to tax in earlier years. The Ld CIT(A) rejected the alternative contention of the assessee for allowing the claim u/s 37(1) of the Act on the reasoning that the assessee is required to produce particulars to show that the loss was incurred during the year under consideration. Accordingly, the Ld CIT(A) dismissed the appeal filed by the assessee. Aggrieved, the assessee has filed this appeal before us. 6. The Ld A.R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory condition prescribed u/s 36(2), viz., the amount claimed as bad debts should have been assessed to income tax either in the current year or in any of the previous years, the submission of the assessee was that it could not prove the same since all the records were destroyed in the fire accident. There is no dispute between the parties that there was fire accident in the business premises of the assessee. Under these circumstances, in our view, one should duly take into account the inability of the assessee to produce the necessary details due to the reasons beyond its control. As submitted by the Ld A.R, the names of all the parties, except Smooth Sky Tours Pvt Ltd shows that they are also in chemical business. Under these circumstanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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