TMI Blog1993 (9) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant had occurred during the accounting year ending on April 30, 1962, and cannot be allowed in the assessment year 1964-65 - - - - - Dated:- 14-9-1993 - S. P. BHARUCHA. and B. P. JEEVAN REDDY. ORDER This appeal is preferred against the judgment of the Allahabad High Court (see [1981] 130 ITR 41), answering the question referred to it in the negative, i.e., in favour of the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tubes. For that purpose, it sought the assistance of one Mohan Lal Vyas and paid to him, between July, 1961, and April, 1962, a sum of Rs. 60,000. In return, the said person agreed to procure the manufacturing licence under the provisions of the Industries (Development and Regulation) Act and a licence or permit for the release of foreign exchange necessary for the import of machinery plant and eq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ps whatsoever to execute the said decree with the result that no amount was recovered thereunder. The appellant says, it treated it as a bad debt and debited the said amount to the profit and loss account, on April 30, 1963. It is on the above facts that the said deduction on account of bad debt was claimed. The Income-tax Officer rejected the appellant's claim. He found the whole story doubtful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the accounting year relevant to the assessment year 1964-65, wherein it was claimed. It noticed that even according to the appellant, the entire amount of Rs. 60,000 was paid during the accounting year ending April 30, 1962, and further that the failure to obtain the licences/permits, which entitled the appellant to refund of the amount, also occurred during the said accounting year. The appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay or failure in doing so, he undertook to return the amount. In the circumstances, the High Court held that the trading loss claimed by the appellant had occurred during the accounting year ending on April 30, 1962, and cannot be allowed in the assessment year 1964-65. We see no reason to take a different view of the matter. On the facts found and evident from the record, the conclusion of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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