Commissioner of Income Tax vs Jaipur Mineral Development Syndicate (P.) Ltd.

The Commissioner has submitted this application u/s 256(2) of the income tax Act, 1961 (''the Act'') for giving a direction to the Tribunal, Jaipur Bench, Jaipur to draw the statement of the case and to refer the following question of law for the opinion of this Court:

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the finding of the Appellate Assistant Commissioner that the assessee-company was entitled to the bad debt amounting to Rs. 6,50,340 in the assessment year 1967-68 since it became bad during the accounting year relevant to the said assessment year?"

We have gone through the order of the Tribunal dated 22-8-1979. The Tribunal had upheld the order of the AAC who had held on the basis of entire evidence on record that the sum of Rs. 6,50,340 had become bad debt in the relevant accounting year. The Tribunal has also given detailed reasons for holding that the assessee-company was entitled to the bad debt accounting of Rs. 6,50,340 in the assessment year 1967-68, since it became bad debt during the accounting year relevant to the said assessment year. This finding has been arrived at by the Tribunal after appreciating the material placed on record and in our view is purely a finding of fact. The Tribunal by order dated 25-3-1980 had thus rightly dismissed the application filed by the department u/s 256(1). In our opinion no question of law arises out of the order of the Tribunal dated 22-8-1979. In view of these circumstances we find no force in this reference application and it is, accordingly, dismissed with no order as to costs.