TaxTMI 
TaxTMI 
1983 (1) TMI 152
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....e in the year under appeal as being a bad debt. A fire broke out in the business premises of the assessee, who was a dealer in Khal. Then, substantial stock was burnt in the fire. The goods were insured against fire with Ruby General Insurance Co., and British India General Insurance Company. The assessee therefore, lodged the claim with the companies. The surveyors assessed the loss at Rs. 3,88,0....
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....sp; ------------ Whereas the British India General Insurance Company paid the full claim, the Ruby General Insurance Co. Paid the claim only to the extent of Rs. 40,000 and rest of the claim was denied, as the full risk was not covered therewith. Then, the assessee was advised by the legal advi....
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....rm continued during this year; it had made one or two transactions during this year; shop expenses and other expenses were allowed to the assessee in the computation of income. What Shri Nanda, learned departmental representative, argues before me is that the business was not carried on in full swing, but stray transactions had been made by the assessee. On these facts, it cannot be said that the ....
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....ase of the assessee is though the liability to the extent of Rs. 1,05,818 was apportioned to Ruby General Insurance Co., but as the risk was not fully covered of the goods with this company, a settlement arrived at that it would honour the partial claim of Rs. 40,000 only. There is nothing on record to show that Ruby General Insurance Company ever agreed to pay the full claim of Rs. 1,05,818. On t....