1977 (7) TMI 81

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....lure to handover the levy imposed by the State Government as per the law, it appears that 92 bags of rice of the value of Rs. 8,526 were confiscated. On appeal, the District Court also had confirmed the order of confiscation. In the assessment for the relevant asst. yr. 1974-75, the appellant claimed a sum of Rs. 8,526 as business loss. The claim of the appellant was negatived by the assessing aut....

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....been brought to our notice. The Orissa High Court was concerned with the following facts. The assessee, a registered firm, which carried on business in iron, cement, paddy and petroleum products, claimed in computing its profits deduction of sum of Rs. 1,233 paid as penalty to the Government of Orissa for supply of inferior quality of paddy and rice. All the assessing authorities rejected the clai....

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....onsequence of earning profit and gains was incidental to the carrying on of the assessee's; business; it was an unavoidable loss arising as one of the consequences of carrying on such business. The sum of Rs. 25,700 paid by the assessee by way of penalty to the Govt. was an admissible deduction in computing the profit under s. 10(1) of the Indian IT Act, 1922. Herein, the assessee could not delive....