TMI Blog1999 (10) TMI 727X X X X Extracts X X X X X X X X Extracts X X X X ..... stions of law, are as under : (i). Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the bad debt claim of ₹ 42,38,439 of the assessee is admissible on the ground that old business should be deemed to continue despite its closure as per resolution of Board of Directors dt. 31st July, 1987 ? (ii). Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that it is enough if the assessee writes off the debt as bad in its books of accounts and the assessee-company need not establish the debt to have become bad ? 3. It appears from the assessment order that in response to notice, chartered accountant along with the accountant a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the order of the Tribunal is bad on two grounds; firstly, the company closed its business, and, secondly, as suits were filed for recovery of amount, it cannot be said that the amount which is to be recovered is bad debts. 5. The Tribunal has arrived at a conclusion on appreciation of the material placed before it and also relying on the decision of the apex Court. 6. Before us it was submitted by Mr. Mehta that in the instant case, in view of the decision of this Court in the case of Bansidhar (P) Ltd. vs. CIT (1981) 20 CTR (Guj) 90: (1981) 127 ITR 65(Guj) : TC 16R.1519, interference by this Court is not called for. He submitted that merely because there was closure of ginning and pressing activities, it would not mean that there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. The loan had been obtained for the purpose of constructing the theatre and at the time when the loan was obtained the said theatre was a part of the business of the assessee. The apex Court held that the fact that the particular part of the business for which the loans had been obtained had been transferred or closed down did not alter the fact that the loans had, when obtained, been for the purpose of the assessee's business. Apart from this, the Tribunal found as a fact that the business carried on by the assessee as a jeweller and in running the cinema theatre, etc. was composite. The apex Court, therefore, held that in view of this also, the assessee was entitled to deduction of interest paid on the loans in question. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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