TaxTMI 
TaxTMI 
1985 (2) TMI 24
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....ed as a business loss ?" On a consideration of the facts and circumstances of the case, we are satisfied that no direction to refer the said question need be given in this case. The assessee in this case is a manufacturer of sugar. While completing the assessment for the year 1976-77, the Income-tax Officer disallowed a sum of Rs. 60,000 being the amount given to the employees' co-operative stores which could not be recovered. The said employees' co-operative stores was established for the supply of rice, provisions and other articles to the employees of the factory. It was administered by a managing committee of 12 members with the general manager of the factory as ex-officio president. The day-to-day management of the stores was carried ....
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....t is not admissible for the assessment year 1976-77. On appeal, the Commissioner of Incometax (Appeals) held that the assessee having decided to write off the amount due to it only in the previous year relevant to the assessment year under consideration, it cannot be considered as a loss arising during the earlier years and, therefore, it should be allowed as a deduction on account of commercial expediency. The Revenue took the matter in appeal to the Appellate Tribunal. The Appellate Tribunal held that the advances made by the assessee to the employees' stores in the course of its business is welfare expenditure and that the advances were found irrecoverable only during the previous year and the loss should be considered to be a business l....