RAJESH BINDAL, J. - (1.) THE following questions of law have been referred for the opinion of this Court by the Income -tax Appellate Tribunal, for the asst. yr. 1975 -76 : "1. Whether, on the facts and in the circumstances of the case, while rightly affirming the order of the CIT(A) rejecting the assessee's claim of deduction of Rs. 4,15,944 as bad debt under s. 36(2) of the IT Act, 1961, the Tribunal is right in law in allowing the same as trading loss incurred by the firm under s. 37 of the Act ?
(2.) WHETHER , on the facts and in the circumstances of the case, the Tribunal is right in holding that the agreement dt. 1st party, M/s Nagaland Liquor Stores transforming it as the assessee's own liability towards the principal as a trade debt so as to enable the assessee to claim it as its own business liability towards the principal for the year under consideration ?
(3.) WHETHER , on the facts and in the circumstances of the case, the Tribunal is right in holding that the amount of Rs. became a trading liability of the assessee firm during the period relevant to the asst. yr. 1975 -76 by virtue of the Whether, on the facts and in the circumstances of the case, the Tribunal was right in allowing the aforesaid amount of Rs. 4,15,944 as trading loss in the asst. yr. 1975 -76 despite the unrebutted finding of the CIT(A) that there was not an iota of evidence brought on the record by the assessee to show that any effort was made to recover these dues from M/s Nagaland Liquor Stores or its partners, one of whom was the son of a partner of the firm ? and;