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TMI Blog1976 (4) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income-tax Appellate Tribunal, Allahabad Bench, Allahabad. " Whether, on the facts and circumstances of the case, the sum of Rs. 44,234 was allowable as a bad debt or as a business loss ? " The assessee claimed a deduction of Rs. 44,234 on account of a bad debt in proceedings for assessment year 1965-66. It was stated that the assessee had advanced a sum of Rs. 5 lakhs to Sri J. P. Srivastava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat it was in consideration of the full amount of Rs. 5,64,234 that these shares were transferred to the assessee and the difference of Rs. 44,234 between the amount that was actually due from Sri J. P. Srivastava and the face value represents the premium paid by the assessee for acquisition of these shares which is capital payment. Aggrieved by this order, the assessee filed an appeal and the App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding : " After going through the copy of the assessee's accounts with M/s. Anand Ram Pooranmal, M/s. Shital Prasad Shyam Lal, Sardar Ranjit Singh, M/s. Modi Spg. & Wvg. Ltd., etc., Sardool Textiles, Sir J. P. Srivastava, etc., as given in pages 2 to 10 of the paper book and also looking into the interest statement of the assessee for the last five years we are inclined to accept that the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loss. In view of our conclusions that this was a business loss, we do not consider it necessary to decide the question whether it was a bad debt. For the reasons stated above we answer the reference by saying that the sum of Rs. 44,234 was allowable as a business loss. As the reference is answered against the department and in favour of the assessee, the assessee shall be entitled to his costs w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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