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Commissioner of Income Tax Vs. Partap Steel Rolling Mills. - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtPunjab and Haryana High Court
Decided On
Case NumberI.T.C. No. 34 of 1977
Reported in(1985)48CTR(P& H)316
AppellantCommissioner of Income Tax
RespondentPartap Steel Rolling Mills.
Excerpt:
.....evidence and exclusion of relevant and admissible consideration ?' 2. it is not disputed by the ld. counsel for the revenue that the finding as to whether a debt is a bad debt or not would be a finding of fact. the tribunal without any reference to the said balance-sheet held the debt to be a bad debt after taking into consideration all the facts and circumstances available on record. the finding that the debt in dispute was a bad debt, whether right or wrong remains to be a finding of fact......so it gives rise to a question of law. the irrelevant evidence relied upon was stated to be the balance-sheet of m/s. delta products private limited, bombay relating to the year 1973. if the tribunal had really based its order on the balance-sheet, the question of law would have arisen but from the perusal of its order, we find that it was the counsel of the assessee who relied on the said balance sheet and not the tribunal. the tribunal without any reference to the said balance-sheet held the debt to be a bad debt after taking into consideration all the facts and circumstances available on record. even if it may be possible to take a different view and draw reverse conclusion it cannot be said that any question of law arises from the order of the tribunal. the finding that the debt.....
Judgment:

: S. P. Goyal, J. - The assessee firm which runs a steel rolling mill in the asst. yr. 1970-71 had written off Rs. 59,789 as bad debt which were due from M/s. Delta Product Private Ltd., Bombay on account of the goods supplied to the latter. The Tribunal reversing the order of the AAC, upheld the plea of the assessee and allowed the said amount as bad debt. The prayer of the revenue for referring the following two questions of law having been declined, the present petition for Mandamus was moved :

'(1) Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in deleting the addition of Rs. 59,789 ?

(2) Whether, on the facts and in the circumstances of the case, the finding of the Appellate Tribunal that the aforesaid amount was claimable as bad debt during the year under consideration is not vitiated by admission of irrelevant evidence and exclusion of relevant and admissible consideration ?'

2. It is not disputed by the ld. counsel for the revenue that the finding as to whether a debt is a bad debt or not would be a finding of fact. He, however, urged that as that finding is based on inadmissible evidence so it gives rise to a question of law. The irrelevant evidence relied upon was stated to be the balance-sheet of M/s. Delta Products Private Limited, Bombay relating to the year 1973. If the Tribunal had really based its order on the balance-sheet, the question of law would have arisen but from the perusal of its order, we find that it was the counsel of the assessee who relied on the said balance sheet and not the Tribunal. The Tribunal without any reference to the said balance-sheet held the debt to be a bad debt after taking into consideration all the facts and circumstances available on record. Even if it may be possible to take a different view and draw reverse conclusion it cannot be said that any question of law arises from the order of the Tribunal. The finding that the debt in dispute was a bad debt, whether right or wrong remains to be a finding of fact. We, therefore, find no merit in this petition which is hereby dismissed but without any order as to costs.


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