1997 (10) TMI 28

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.... The assessee is a co-operative and marketing society and the assessment year concerning the tax case reference is the assessment year 1971-72 and the relevant accounting year is the year ending with June 30, 1970. In computing its income for the said assessment year 1971-72, the Income-tax Officer made the following addition towards the reserve for deficit stock of Rs. 1,87,544. The Income-tax Officer disallowed the same for the reasons stated in the earlier assessment years. The case of the assessee before the Income-tax Officer was that the stocks were damaged and since they would not be sold normally, the reserve was created and the reserve made for the deficit stocks should be allowed as deduction. According to the assessee, the rese....

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....The Appellate Tribunal also found that it cannot be said that the assessee had explained the loss of stock. The further finding of the Appellate Tribunal is that when it is proved that the stocks were damaged, the assessee will be entitled to claim deduction at that time. In this view of the matter, the Appellate Tribunal dismissed the appeal filed by the assessee. Dissatisfied with the order the present reference has been sought for by the assessee and the Appellate Tribunal has stated the case and referred the question of law as set out supra Mr. K. S. Sivaraman, learned counsel appearing for the assessee, fairly brought to our notice an earlier decision of this court in the assessee's own case in the case of North Arcot District 165 I....