LAWS(APH)-1966-9-46

KASAMSETTY RADHAKRISHNAIAH CHETTY Vs. COMMISSIONER OF INCOME TAX

Decided On September 15, 1966
KASAMSETTY RADHAKRISHANIAH CHETTY Appellant
V/S
COMMISSIONER OF INCOME-TAX A P Respondents

JUDGEMENT

(1.) The question referred to this court under section 66 (1) of the Indian Income-tax Act, 1922, is as follows :

(2.) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in the disallowing the sum of Rs. 9,000 claimed by the assessee as a bad debt

(3.) The assessee is an individual and the relevant accounting period is 1956-57 ending on December 31, 1956. His sources of income were property, shares in two registered firms, and other sources. The assessee maintained a set of account books in which he recorded the amounts which he borrowed from others for the purpose of advancing to the two firms of which he was a partner. The share of the income received from the firms was credited in those books and the interest payment on borrowing were debited. The method of accounting adopted by him was the mercantile basis. Excluding the amount which he got towards his share of the income, he showed a loss of Rs. 14,982 under the head business consisting of payment of interest, and a bad debt amounting to Rs. 9,000. The claim in respect of the bad debt was disallowed by the Income-tax Officer, the Appellate Assistant Commissioner as well as the Tribunal.