1996 (3) TMI 43

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....e-tax Act, 1961, made at the instance of the assessee for calling for a reference from the Tribunal and in pursuance of the directions of this court, the following question of law has been referred by the Tribunal for answer of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in rejecting the claim made by the assessee of loss of stock-in-trad....

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....e said federation. Consequently, the police seized the stock of sal seeds of the assessee on suspicion of its being stolen property. The assessee was unsuccessful before the High Court in the writ petition for the release of the sal seeds seized by the police. The High Court directed that since the sal seeds were a perishable commodity, it should be sold by auction and the sale proceeds should be ....

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.... assessee approached the Commissioner of Income-tax (Appeals) by filing an appeal and the Commissioner of Income-tax (Appeals) has held that the loss of income of the assessee cannot be treated to be a loss till the criminal court decided the matter against the assessee. Therefore, it was not treated to be a loss of the income of the assessee and the deductions were declined. Aggrieved against thi....

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.... by the criminal court. In case the criminal court decides against the assessee and holds that the stock which was seized stands confiscated to the State, then in that case it will be treated to be a loss of the assessee's income and the deduction towards that amount can be given in the year in which the case is decided. In case the criminal court finds in favour of the assessee and the money is t....