2005 (10) TMI 37

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bad Bench "C", has referred the following question under section 256(1) of the Income-tax Act, 1961 ("the Act"), at the instance of the Commissioner of Income-tax. "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee was entitled to a deduction of a sum of Rs. 3,45,000 as business loss, etc.?" The assessment year is 1986-87 and the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tions had been effected should have been careful to check before releasing the relevant amount in favour of the Dubai party, that the shipping documents were correct and genuine. The Assessing Officer further took note of the fact that the assessee had filed a civil suit against the bank claiming that the bank was not entitled to recover any sum of money from the assessee. The assessee carried ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... and would get deduction if the loss is allowed in the year under consideration. Mr. Sunil B. Parikh, learned advocate appearing on behalf of the respondent, resisted the reference and submitted that there was no error committed by the Tribunal so as to warrant interference. He pointed out that, as a matter of fact, the assessee had failed in the suit filed against the bank and hence the appreh....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....following findings of facts: (i) that the assessee had in fact suffered a loss to the tune of Rs. 3,45,000; (ii) the loss related to the business, came to the knowledge in the year under consideration; (iii) the contention that the transaction was not genuine was not even the case of the Assessing Officer because the Assessing Officer himself had observed in the assessment order that a fr....