2005 (2) TMI 108

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.... of the assessee, the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short "the Tribunal"), has referred the following question of law arising out of its order dated September 27, 1990, relating to the assessment year 1983-84 for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the Tribunal erred in law in disallowing the claim of loss of....

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....a loss of Rs. 1,48,950 on account of what it claimed to be a loss on account of goods destroyed by fire on March 26, 1978, which were lying in the god own of the Punjab State Warehousing Corporation, Chandigarh (hereinafter referred to as "PSWC"). In this way, despite the surrender of Rs. 1 lakh which should have increased its returned income by Rs. 1 lakh the assessee reduced its returned income ....

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....main reason given by the Income-tax Officer was that the assessee had never claimed this loss earlier although, according to the assessee, the fire had taken place on March 26, 1978 and, hence, according to the Income-tax Officer, it was only an afterthought as a result of survey conducted on January 20, 1984 and could not be allowed in the year under consideration. Secondly, according to the Inco....

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.... When the matter came up in appeal before the Tribunal, the Tribunal considered the contentions of both the sides, the authorities cited and came to the conclusion that there is no justification either according to the principles of accountancy or on the basis of law, in not writing off these stocks which were destroyed not claiming this loss in the assessment year 1978-79 when the actual loss ha....