2008 (3) TMI 429

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....he Commissioner. JUDGMENT The judgment of the court was delivered by C. N. Ramachandran Nair J.- This is a reference at the instance of the assessee. The question raised is whether the Tribunal was justified in confirming the disallowance of loss of Rs. 3 lakhs claimed by the assessee, being part of the deposit made by the assessee with another company for acquiring the right to distribut....

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....the first appellate authority and also the Tribunal in the second appeal. It is against this order of the Tribunal, the assessee has sought reference of the question pertaining to disallowance. 2. We have heard Sri P. Balachandran senior counsel appearing for the assessee and Sri P. K. R. Menon, senior counsel appearing for the respondent-Revenue. We notice that all the three authorities below ....

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....entitled to deduction of the same under section 37(1) of the Income-tax Act, 1961. We are therefore of the view that the Tribunal is right in disallowing the claim. Even though counsel for the assessee relied on the decisions of the Supreme Court in Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1 and CIT v. Madras Auto Service P. Ltd. [1998] 233 ITR 468 (SC), we do not find that these decisions will ....