| Case ID |
ea1289e9-78e4-4d3e-8501-6baf62f2424b |
| Body |
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| Case Number |
I.T.A. No. 2629 of 1967-68 |
| Decision Date |
Dec 31, 1968 |
| Hearing Date |
|
| Decision |
The Income Tax Appellate Tribunal ruled in favor of the assessee, allowing the claim for a loss of Rs. 52,523 due to short receipt of pig iron. The Tribunal determined that the loss was admissible as a trading loss in the relevant accounting year, irrespective of the pending claim with the insurance company. The court emphasized that the fate of the claim was not relevant to the recognition of the loss in the accounts for the year under consideration. The appeal was allowed, and the disallowance made by the Income-tax Officer was overturned. |
| Summary |
In a significant ruling by the Income Tax Appellate Tribunal, the case I.T.A. No. 2629 of 1967-68 addressed the admissibility of business losses under the Income-tax Act, 1922. The Tribunal's decision clarified that the short receipt of pig iron valued at Rs. 52,523 could be debited to the profit and loss account as a trading loss, despite the ongoing litigation regarding the insurance claim. This case underscores the importance of recognizing actual business losses in the accounting period they occur, irrespective of the legal status of related claims. The ruling aligns with established legal precedents and reinforces the principles of accounting for losses in manufacturing businesses. Keywords such as 'Income Tax Appellate Tribunal', 'business loss', and 'Income-tax Act' are critical for understanding the implications of this decision. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
M. EUSUF, JUDICIAL MEMBER,
A. AHMED, ACCOUNTANT MEMBER
|
| Lawyers |
S.M. Hossain,
A. Rahim
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1970 SLD 756,
(1970) 21 TAX 27,
1970 PTD 22
|
| Other Citations |
National Petroleum Co. Ltd., Bombay v. Commissioner of Income-tax, Bombay (1945) I.T.R. vol. XIII page 336
|
| Laws Involved |
Income-tax Act, 1922
|
| Sections |
10(2),
10(2)(xi)
|