1999 (11) TMI 24

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....ome-tax Act, 1961, the Income-tax Appellate Tribunal, Allahabad, has stated a case and referred the following question stated to be of law and to arise out of the Tribunal's order dated January 21, 1978, passed in ITA No. 516 (Alld.) of 1976-77 for the assessment year 1973-74 for the opinion of this court : "Whether the Tribunal was legally correct to hold that the losses of Rs. 58,181 suffered....

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....chase and sale of tobacco and the assessee suffered losses amounting to Rs. 28,167.50 and Rs. 30,014. The assessee's claim of the said losses was investigated by the Assessing Officer who found that the losses were not genuine and disallowed the same. On appeal, the Appellate Assistant Commissioner took a different view and allowed the assessee's claim. The Commissioner then approached the Trib....

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....1. This assumption is wrong as the Tribunal had nowhere held that the assessee suffered the alleged losses. For facility of reference we reproduce the Tribunal's conclusion with regard to the aforesaid losses as under : "25. What is the motivation for transferring of the said loss from the books of Kishan Lal Bhagirath to the books of the assessee is not for us to speculate. There could be a hu....

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.... of tobacco. The said transactions have been made in the books of Bherudan Hardeo Chand and Kishan Lal Bhagirath and it is only towards the end of the year that the resultant losses have been transferred to the books of the assessee-firm by way of adjustment entries. A mere adjustment entry, as pointed out above, would not make transactions of another the transactions of the assessee. In our opini....