1980 (2) TMI 67

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....e assessee started export of cycle parts. According to the general manufacturing and trading account and export trading account for the year ending 31st March, 1971, the assessee incurred a loss of Rs. 38,673 in the export business. This loss was not transferred to the profit and loss account for the year ending 31st March, 1971, but was transferred to the balance-sheet as on 31st March, 1971. The said loss was not claimed as a business expenditure, for the assessment year 1971-72. During the assessment year 1972-73, the assessee also carried on export business and as per the general manufacturing and trading account and export trading account for the year ending 31st March, 1972, it incurred a loss of Rs. 49,278. This loss included the ....

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....uestion and should have been allowed as a business loss of that year. The Tribunal, therefore, directed that the assessee should be allowed to set off of the loss of Rs. 32,118 in the export of cycle parts against the income of that year. The revenue having made a reference application, the Tribunal has referred the following question of law to this court for its opinion : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law directing that the assessee should be allowed a set off of the loss of Rs. 32,118 in the export of cycle parts in the assessment year 1972-73 ? " After hearing the learned counsel for the parties and taking into consideration the material on the record, we are inclined to ans....

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.... was not in a position to ascertain the market value of the goods so imported against the import licences. The said value may vary from time to time, In this view of the matter, the loss incurred by the assessee in export of cycle spare parts was not ascertainable as the value of the goods to be imported as against the import licences could not be ascertained before 31st March, 1971, as the import licences were received after that date and during the .subsequent assessment year. The proposition of law propounded by us finds ample support from the decision of the Calcutta High Court in CIT v. Shewbux Jahurilal [1962] 46 ITR 688 (Cal) and CIT v. Sugar Dealers [1975] 100 ITR 424 (All). Shri Awasthy, on the other hand, places reliance on the....