Law:

Section:

Section 255 of the Income-tax Act, 1961 - Appellate Tribunal - Procedure of - Whether where appeal was adjourned earlier on same reason for more than 11 times (e.g. non-representation on behalf of assessee), Tribunal was perfectly justified in exercising its discretion in refusing to grant adjournment and deciding case on merits - Held, yes Section 36(1)(vii) of the Income-tax Act, 1961 - Bad debts - It was specifically found by Commissioner (Appeals) that write-off of debt was not bona fide as assessee had not taken steps for recovery of same and it was also admitted that even during accounting year, assessee had received some payments towards debt, which showed that debt had not really become bad - Whether in such circumstances, Tribunal was correct in its view that assessee had not established that debt which had been written off, had become bad - Held, yes FACTS The assessee filed the instant appeal alleging that his request for adjournment of the appeal for stay of the recovery of tax, on the ground that its counsel was out of station, was not entertained by the Tribunal in view of the fact that the appeal was adjourned as many as ten times at the assessee's instance. Secondly, on merit, the Tribunal held that the assessee had not established that the debt had become bad and thirdly the Tribunal added a sum to undisclosed investment in bank. HELD The Tribunal had fixed the date of hearing of the appeal on 12-12-1994, when the assessee filed a petition for stay of the recovery of tax. Thereafter, the appeal had been adjourned as many as ten times and it was found by the Tribunal that all the adjournments took place at the assessee's request. The matter was adjourned on 24-8-2001 and on that date there was no representation on behalf of the assessee. Thereafter, the matter was adjourned to 21-12-2001. Even on 21-12-2001, the counsel for the assessee was not present. The Tribunal, therefore, felt that there was no point in adjourning the matter further and proceeded to hear the appeal on the merits. Therefore, it was held to be that the Tribunal was perfectly justified in exercising its discretion in refusing to grant adjournment considering the fact that the…

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