1983 (4) TMI 48

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....as taken by the munim was trading loss incidental to the business ? " The facts are not in controversy. The assessee deals in grains and groceries. The assessee sent the munim, Shri Shib Paul, to Ranchi on September 12, 1969, with cash amounting to Rs. 10,025 for making purchase of some grocery articles and for making payment of some outstanding dues to some of the constituents. The maxim made certain purchases from various firms and sent the same to the assessee by truck on September 20, 1969. According to the assessee, the maxim, Shri Shib Paul, informed that he would be coming back shortly and when he did not turn up on September 30, 1969, the assessee contacted the parties at Ranchi and learnt that payments were not made to them. The....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ture. The Tribunal allowed the loss as a business' loss, while holding in para. 8 of its judgment that : "The fact that the assessee's business required purchasing of goods from outstation parties when employees were sent with huge cash cannot be denied. He has to place reliance for such work on old employee. The said maxim was in service for over 7 years and was drawing salary of Rs. 250 per month. On earlier occasion also he has gone for such work. The factum of loss has also been proved inasmuch as the assessee has lodged a F.I.R. with the police on 2-10-69 only shortly after the incident.. Merely because the assessee has not taken any step to recover, it cannot be said to be a ground for not allowing such item as a business loss." ....