GREAVES LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal was on Board on 31st March, 2001, when the following order was passed : "For reasons to be given subsequently appeal dismissed."

(2.) WE now propose to give reasons :

(3.) IN this appeal, we are concerned with the asst. year. 1984 85. The last day of the accounting year was 30th June, 1983. On that day, Greaves International Ltd. entered into an agreement with its sister concern Greaves Cotton Ltd. Under the said agreement, Greaves International Ltd. assigned doubtful debts of RS.68,70,943.27 for a price of RS.21,33,987 to Greaves Cotton Ltd. appellant herein. The amount of RS.21,33,987 was the recoverable amount out of the total doubtful debts of RS.68,70,943.27. This was as per surveyor's report also dt. 30th June, 1983. On 1st July, 1983, Greaves International Ltd. got merged into Greaves Cotton Ltd., the appellant herein. The assessee Greaves International Ltd. claimed deduction in respect of the bad debts which, according to the surveyor's report, were not recoverable. This has been disallowed by all the authoritieS.The claim was also disallowed by the Tribunal. However, in the alternative, for the first time, before the Tribunal, the said assessee submitted that if the debts, as claimed by the assessee, cannot be written off as bad debts, they should be allowed as a trading losS.This alternate plea was raised for the first time only before the Tribunal. Finally, both the pleas were rejected by the Tribunal. Hence, the assessee has come in appeal under S.260A to this Court. Findings :