1938 (5) TMI 14

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....ome Tax, Act. The assessee was Pandit Ganeshi Lal, now represented by his widow, and he owned and worked a brick-kiln. The accounting year is the year ending 30th September, 1932, and the Income Tax Officer assessed him to Income Tax at ₹ 5,206. The Income Tax Officer disallowed five items, for which the assessee claimed allowance. The assessee appealed from the assessment order to the assi....

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....h the brick-kiln was situated and also the cost of executing and registration of the sale deed. The assessee contended before the assistant Commissioner that, since the land had been purchased for the purpose of extracting earth for manufacturing bricks, the price paid therefore was expenditure necessary for earning profits; but the Assistant Commissioner repelled this contention and held that the....

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....which have been used for the purposes of the business other wise than as stock-in-trade and have died or become permanently useless for such purposes". The dairy was admittedly closed down in 1930, i.e., long before the accounting year; and the Assistant Commissioner finds as a fact that the cattle were not sold because they had become permanently usless but were sold because the dairy busine....