Mobile View
Advanced Search Search Tips
View Complete document
Hotel Radhika vs Deputy Commissioner Of ... on 28 June, 1995
Showing the contexts in which t.n. aravinda reddy appears in the document
Change context size
Current

find the amount in question has not been actually written off as bad debts from the books of the firm. That is one of the pre-conditions for allowing the claim as bad debts. The appellant can make a claim in a subsequent year when the amount is actually written off as bad debts. The claim for this year is rejected." It is against this order, the assessee is in appeal before the Tribunal. 4. The learned Authorised Representative for the assessee relied upon the decision of the Honble Supreme Court in the case of CIT v. T. N. Aravinda Reddy [1979] 120 ITR 46 and submitted that the order of the learned

6. We have heard the rival submissions and have gone through the orders of the revenue authorities and the decision of the Honble Supreme Court. In the case of T. N. Aravinda Reddy (supra), the Honble Supreme Court affirmed the decision of the Honble Andhra Pradesh High Court in the case of CIT v. T. N. Aravinda Reddy [1979] 116 ITR 551. The question before the Honble High Court was when some of the members of HUF relinquished their rights in favour of the assessee and whether this would constitute ownership right in the assessee. The Honble High Court held that the assessee by virtue of the release deed of other members of the HUF, acquired the title of the house. Distinguishing the decision of the Supreme Court in the case of Kuppuswami Chettiar v. Arumugam Chettiar AIR 1967 SC 1395, the Honble High Court

equivalent of price by payment in kind or adjustment towards a debt or for other monetary consideration". It can reasonably be presumed that even an adjustment towards a debt of a property would amount to a purchase in the given circumstances. In the instant case of the assessee, the cost of the computer has been adjusted by the assessee towards a debt, i.e., a debt owed by M/s. Total Computers, Bombay. 8. In the light of the above discussion and also in the light of the decision of the Honble Supreme Court in the case of T. N. Aravinda Reddy (supra), we are in agreement with the arguments of the learned Authorised Representative. 9. In the result, the appeal of the assessee is allowed