TRAVANCORE TEA ESTATES CO. LTD. VS COMMISSIONER OF INCOME-TAX
1999 P T D 1252
[233 I T R 203]
[Supreme Court of India]
Present: Suhas C. Sen and Syed Shah Mohammed Quadri, JJ
TRAVANCORE TEA ESTATES CO. LTD.
Versus
COMMISSIONER OF INCOME-TAX
Civil Appeal No. 11369 of 1995, decided on 17/12/1997.
(Appeal from the judgment and order., dated January 9, 1992 of the Kerala High Court in I.T. References Nos.57 and 58 of 1990).
Income-tax---
----Bad debt---General principles---Whether debt became bad or point of time when it became bad---Are pure questions of fact---Amount due for commodity supplied by assessee---Dispute regarding amount---Matter referred to arbitration---Sale of business during pendency of arbitration proceedings---Amount written off---Not allowable as bad debt---Indian Income Tax Act, 1961, S.36(1)(vii).
From the decision of the Kerala High Court in Travancore Tea Estates Co. Ltd. v. C.I.T. ((1992) 197 ITR 528, to the effect that the amount due for commodity supplied by the assessee which was written off could not be allowed as a bad debt, the assessee preferred an appeal to the Supreme Court. The Supreme Court dismissed the appeal holding that it was well settled that whether a debt had become bad or the point of time when it became bad were pure questions of fact and no question of law was involved therein.
Travancore Tea Estates Co. Ltd. v. C.I.T. (1992) 197 ITR 528 affirmed.
ORDER
This case is about writing off of bad debts.
It is well-settled that whether a debt has become bad or the point of time when it became bad are pure questions of fact.
There is no question of law involved in this appeal. We, therefore, decline to go into the controversy raised. The appeal is dismissed. There will be no order as to costs.
M.B.A./1915/FCAppeal dismissed.