- (1.) On an application under Section 256(2) of the Income-tax Act, 1961, this court had directed the Tribunal to refer the following questions set out at page No. 1 of the paper book : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the bad debt of Rs. 2,42,006 in the name of Shalimar Works Ltd. written off during the year was not an allowable deduction in the computation of income from business ?"
(2.) Whether, the finding of the Tribunal that the debt of Rs. 2,42,006 relating to Shalimar Works Ltd. had become bad and irrecoverable during the previous year is based on any wrong principle of law or ignoring the relevant materials ?" 2. In compliance with the direction the aforesaid questions are referred for our opinion with the statement of the case.
(3.) The relevant assessment year is 1981-82. During the course of assessment, the Assessing Officer noticed that a sum of Rs. 2,42,006 was due from Shalimar Works Ltd. and the assessee had written off that amount and claimed it as bad debt in this year. The Assessing Officer has rejected the claim of the assessee. According to him though the assessee is an unsecured creditor the assessee has not produced any evidence that the official liquidator has rejected the claim of the assessee.;