By advance for sundry expenses due from the promoters of new companypany debited to this transferred 5,071 8 5 By balance 6,00,000 0 0 1950 opened with entry on January 1 To Balance and closed with an entry 6,00,000 0 0 By amount paid to Southern Agencies Ltd., 6,00,000 0 0 This was shown as an opening balance on January 1, 1951.
4,05,072 8 6 in the assessment year 1952 53 as a bad debt which was written off in its books of amount on December 31, 1951.
The assessee companypany was incorporated in 1935 and, as is usual with companypanies, its memorandum of association authorised it to do multifarious business.
These accounts began in 1948 and ended on December 31, 1951.
The High Court certified the case as fit for appeal to this companyrt and this appeal has filed by the assessee companypany.
On January 1, 1949, the amount opened with a debit balance of Rs.
The Tribunal upheld the order of the Appellate Assistant Commissioner but on a third ground.
A number of reversing entries were made in respect of certain amounts and then December 31, 1949, the amount was shown as follows Rs.
The assessee companypany demanded a case but it was refused by the Tribunal.
The last amount included a sum of Rupee 1, hire for carriage, which was also written off after the entry had been reversed.
In December, 1948, sundry amounts totalling Rs.
The Commissioner of Income tax Bangalore , Kerala, is the respondent.
The judgment of the companyrt was delivered by.
On December 7, a payment of Rs.
4,00,000 were transferred for writing off.
6,05,071 8 5.
5,072 8 5.
The assessee companypany appealed to the Tribunal.
This claim was disallowed.
On December 31, 1951, Rs.
2,00,000 was shown and Rs.
The accounts are headed personal ledger.
4,00,000 were written off and so also the amount of Rs.
Nothing appears from the accounts who this you was.
