VINAY OIL MILL Vs. INCOME-TAX OFFICER

JUDGEMENT

(1.) BEING aggrieved and dissatisfied with the impugned order dated 31.10.2000 passed by the Income Tax Appellate Tribunal, Rajkot Bench in ITA No. 3411/Ahd/95 for the assessment year 1985 -86, the assessee has preferred the present tax appeal.

(2.) THIS appeal was admitted by this Court on 16.04.2001 for consideration of the following substantial question of law:

(3.) THE assessee is a partnership firm and is engaged in the business of oil and oil seeds. The assessee filed its return of income for the assessment year in question for Rs. 3,85,470/ -. The Assessment Officer vide his order u/s. 143(3) of the Act held that an amount of Rs. 3,68,615/ - debited to profit and loss account as bad debts in pursuance to the agreement dated 30.07.1984 with Sunrise Soap and Chemicals Pvt limited was inadmissible since the conditions laid down u/s 36(1)(vii) rws 36(2)(i) of the Act were not satisfied.