COMMISSIONER OF INCOME TAX Vs. SANTOSH RICE MILLS

JUDGEMENT

(1.) THIS is an application under Section 256(2) of the Income-tax Act, 1961.

(2.) THE material facts giving rise to this application briefly, are as follows : THE assessee is assessed in the status of a registered firm. For the assessment year 1977-78 for which the accounting year ended on Diwali, 1976, the assessee claimed deduction of a sum of Rs. 45,370 on account of bad debt. THE Income-tax Officer rejected that claim. On appeal, the Commissioner of Income-tax (Appeals) upheld the finding of the Income-tax Officer in that behalf. On further appeal before the Tribunal, the Tribunal upheld the claim of the assessee and allowed that appeal. Aggrieved by the order passed by the Tribunal, the Revenue sought reference, but as that application was rejected, the Revenue has filed this application.