TMI Blog1989 (3) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... ustified in holding that the debt became bad and doubtful during the relevant previous year ?" The question of law relates to the assessment year 1958-59 for which the accounting period was the year ended on March 31, 1958. The dispute involved in the questions before this court pertains to the claim of allowance of a bad debt or loss incurred by the assessee in the course of its business as film distributors in a sum of Rs. 1,61,531. The said amount had been debited in the profit and loss account as being irrecoverable from the producer and director, Sorab Modi of Bombay, and represented advances made for production of two pictures Warts and Galib. The pictures were neither produced nor received by the assessee at any time. Dispute acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on was granted. The assessee appealed against the order granting injunction and on November 19, 1954, the order was vacated. Thereafter, the producer applied in the Calcutta High Court for stay of the suit filed by the assessee until the suit in Bombay was decided and the assessee also filed a similar application for stay of the suit in Bombay. Both the applications came to be rejected. Both the parties filed appeals against these orders, the producer on September 18, 1955, and the assessee on September 22, 1955. The Calcutta High Court allowed the appeal of the producer on March 1, 1957, and granted stay of the assessee's suit and dismissed the assessee's appeal seeking grant of stay of the suit at Bombay. The assessee applied for leave to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of view, the assessee reasonably came to the conclusion that the debt had become bad and irrecoverable and accordingly wrote it off." The question whether the said sum was a bad debt or not and at what point of time such claim could be allowed is purely a question of fact. The finding of the Tribunal has not been challenged before us as perverse. In the case of Bank of Bihar Ltd. v. CIT [1962] 45 ITR 427, it was held by the Supreme Court that the question whether a debt is a bad debt is one of fact and if there is some evidence to justify the conclusion of the Tribunal, it is not open to the High Court in a reference under section 66 to reappreciate the evidence. Accordingly, in view of the principle laid down by the Supreme Court in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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