1980 (10) TMI 117

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....the goods to the consignee. In the present case on information received from the transporter and the broker, M/s Gadiya Textiles had to bring the goods from the transport company. The goods were loaded in the cart of M/s Gadiya Textiles. The broker took payment of freight etc. from M/s Gadiya Textiles and remitted the same to the assessee. 2. After two years, it was found that the said goods did not reach the assessee. They were lost in the transit. The assessee claimed the sum of Rs. 27,000 from the transporter company. Ultimately the matter was settled for Rs. 18,000 and the assessee had to pay Rs. 18,000 to M/s Gadiya Textiles, Pali. The assessee claimed it as business loss. 3. The ITO did not allow it. According to him the assesse....

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....he business and to earn the profit, such claim can be made under s. 37 of the Act. Reliance was placed on the decision in the case of Sassoon J. David & Co. (Pvt) Ltd. vs. CIT (1979) 10 CTR (SC) 383 : (1979) 118 ITR 261 (SC) and Addl. CIT vs. B.M.S. (Pvt) Ltd. (1979) 11 CTR (Mad) 146 : (1979) 119 ITR 321 (Mad). 7. The ld. Deptl. Rep. supported the order of the AAC. 8. I have heard the parties and perused the entire evidence on record. Simply because no report was lodged with the police it cannot be accepted that no loss took place of the goods in question. The ITO simply disbelieved the case of the assessee because no such report was lodged and there was also delay of making the claim by M/s Gadiya Textiles. The AAC more or less on th....