9911796707
TMI Blog1980 (1) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... Shyam Sunder. Calcutta, Rs. 30,000 and Rs. 36,000 in 1955 and 1959-60 respectively to M/s. India Trading Co. and Rs. 29,000 and Rs. 30,000 in 1965 and 1967 respectively to M/s. Jai Shree Metal Products, Calcutta. The accrued interest on these loans was offered for assessment under the IT Act year after year in the earlier assessment years. It was claimed before the WTO that out of these loans Rs. 26,877 which remained outstanding from M/s. Shrinivas Shyam Sunder and similarly the outstanding amount of Rs. 29,546 from M/s. India Trading Co. was not at all recoverable and in respect of the amount outstanding from M/s. Jai Shree Metal Products, amounting to Rs. 56,553 the assessee expected to recover only Rs. 25,000 as promised by the partners ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey were not in financial position to repay the amounts now outstanding against them, they had no alternative but to request the assessee, that is ex-Raja and his wife Rani Sahiba to favour them with the remission of these amounts in view of the loyal and devoted services that they had rendered to the Estate of which the assessee was formerly the Raja. In the case of M/s. Jai Shree Metal Products, the partners promised to repay the assessee Rs. 25,000 out of the amount outstanding against them out of sale proceeds of machinery of the said firm and requested that the balance amount be written off and fore gone again in view of their loyal and devoted services to the Estate of the assessee while he was the Raja. Proceeding further Shri Sadh su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the outstanding amounts from these three firms had their full value were rightly included in the assessee's net wealth. 6. We have carefully considered the rival submissions. At the outset, it would be necessary to point out that we are not considering the assessee's claim of bad debts under the IT Act, where apart from whether the amounts were recoverable or not, the other conditions also have to be satisfied. The issue under appeal before us is whether the amounts, which the assessee had claimed to be not recoverable, had any value and hence whether they could be included in full or in part in the assessee's net wealth. It is not under dispute that before the ITO the report of the assessee's lawyer and Block Pramukh was filed in which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e's net wealth were the assessee had some hope of recovery. Taking all these facts into consideration and looking to the totality of the facts and circumstances of the case, we come to the conclusion that the assessee was justified in treating only Rs. 25,000 out of the amount outstanding from M/s. Jai Shree Metal Products as assessee's asset for inclusion in the net wealth and is not including the balance amount due from M/s. Jai Shree Metal Products and the entire amount due from M/s. Shrinivas Shyam Sunder and India Trading Co. in his net wealth. The addition on this account made by the Revenue authorities, therefore, in our view, was not justified and is hereby deleted.
7. The appeals are allowed. X X X X Extracts X X X X X X X X Extracts X X X X
|
