9911796707
TMI Blog1978 (12) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... ong with his two brothers advanced a sum of Rs. 2,84,763 to Sohanlal Singhania somewhere between 1941 and 1946. This money was advanced out of the secret profits of the assessee and his brothers, which were outside the books. The assessee and his brothers reached a settlement with the Central Board of Revenue on 17th January, 1957, as a result whereof each of the three brothers entered an amount o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dismissed by the AAC. The assessee took up the matter to the Tribunal. The Tribunal held that the debt had become barred by time and was irrecoverable even in January, 1957, when it was brought into the books of the assessee for the first time. The fact that Sohanlal Singhania has simultaneously in January, 1957, entered this debt in his books was not very material, because he in his books had sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )(c) of the Gift-tax Act, 1958? " There is no doubt that the loan really became barred by time in January, 1957, when the assessee included it in his books of account. The fact that Sohanlal Singhania had also included this debt in his books of account was not very material because he had admitted M/s. Shroff & Company to be the creditor. He has not showed the assessee or his brothers as the cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in coming to the conclusion that the write-off by the assessee was bona fide. We have been persuaded to hold that this finding was without any material to support it. On this finding, the question whether in fact or in law the write-off was in reality a release or discharge or surrender or forfeiture or abandonment of the debt becomes one of academic interest only. Clause (c) of s 4(1) of the G. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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