1988 (11) TMI 23

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... delivered by GOKAL CHAND MITAL J. -Tarlok Chand Des Raj and Company, the assessee, had a wholesale and retail vend licence. The assessee had deposited an amount of Rs. 1,20,300 as security with the State Government for lifting the stipulated quantity of liquor for sale. The Excise Department of the State Government forfeited the aforesaid security amount. During the assessment proceedings for ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the assessee at the end of the financial year 1968-69 and as per the excise authority's letter dated July 16, 1974, the full amount of security stands already adjusted against the annual licence fee arrears as aforesaid." On the direction of this court, the Tribunal has referred the following question for our opinion: "Whether, on the facts and in the circumstances of the case, the Appellat....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nd the amount stands forfeited, the assessee would be entitled to claim deduction in the accounting year in which the order is passed, but until there is an order of forfeiture of the security, the assessee cannot claim deduction of the same as a permissible expenditure. Once the High Court deleted the adjustment of the security amount against the arrears of the licence fee, the assessee was en....