TMI Blog1967 (3) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1922 : " (1) Whether there was any material before the Tribunal for the finding that neither of the two amounts of Rs. 3,25,000 and Rs. 16,005 was a bad debt arising during the course of the money-lending business of the assessee ? If the answer is in the affirmative : (2) What was the true nature of the transactions and whether in view of the true nature of the transactions, the debts could still be claimed as bad debts in working out the assessable income of the assessee ? (3) Whether there was any material on which the Tribunal could arrive at the finding that the debts had become bad prior to the year of account in question ?" The relevant facts out of which these questions arose were stated by the Tribunal in the stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Edward Mills Limited and also the shares of the Edward Mills Limited for Rs. 4,50,000 for which also a credit was given in the current account. In the same year on November 3, 1932, the assessee also obtained a pro-note from M/s. Amolakchand Mewaram for Rs. 3,25,000 crediting the amount to the current account, the debit for which was given to a new account styled " Amolakchand Mewaram pro-note account ". After these adjustments the current account was left with a debit balance of Rs. 25,626. Thereafter, there were only petty transactions and adjustments. At the commencement of the Samvat year 1994-95, there was a debit balance of Rs. 9,017. The assessee purchased Amolakchand Mewaram's card of the East India Cotton Association for a sum o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding business and that the debt had become bad prior to the year of account. The High Court answered all the three questions against the assessee and in favour of the department. The assessee having obtained special leave, the appeal is now before us. It is not necessary to deal with the questions (1) and (2) because if the answer to the question (3) is given against the assessee the appeal must fail. The High Court in rejecting the claim of the assessee observed : " In order to succeed in claiming that a debt has become bad it is incumbent upon the assessee to establish that the debt was good immediately at the commencement of the relevant year of account and that it had become bad during the year of account. In the present case t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ried to argue that there was not sufficient material before the Tribunal for the findings arrived at. We pointed out to him that it was not open to him, on the question as framed, to go into the question whether the Tribunal should or should not have come to the findings it did. What we are concerned with is whether there is any material on which the Tribunal could arrive at the findings that the debts had become bad prior to the year of account in question. From a perusal of the findings of the Tribunal and the reasoning of the High Court it is quite clear that there was material for the Tribunal to have come to the conclusion that the two debts had become bad prior to the year of account. The material on which the Tribunal could well c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
