Assessee was engaged in the business of manufacturing ceramic tiles. During search, a loose papers file was found and seized, which contained receipts and payment account. On the payment side, apart from various expenses of revenue nature, investment, repayment of loan and debtors etc. were shown. Assessee claimed that ‘debtors’ noted in the payment side of statements in loose papers should be considered as allowable expenses as the same pertained to amount not realised or not received from debtors. Further, there was a general trade practice in the line of business of the assessee of allowing cash discount of 30% to 40% to traders. However, Assessing Officer did not consider such claim made by assessee. Commissioner (Appeals) directed the Assessing Officer to allow 70 per cent of the amount written under head ‘debtors’.Tribunal arrived at findings of fact that the contention of the assessee that there was a general practice in the line of trade to allow 30% to 40% discount to traders on goods sold could not be accepted in view of the fact that separate payment under head ‘discount and commission’ was mentioned on the payment side. Tribunal also found upon perusal of loose papers that debt under head ‘debtors’ was only for some period and not for all periods. Tribunal disallowed 100 per cent of the amount claimed as an expenditure under head ‘debtors’ by assessee. High Court affirmed the order of the Tribunal.   (BP. 1-4 1990 to 9-1-2001)