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TMI Blog1977 (7) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... that 92 bags of rice of the value of Rs. 8,526 were confiscated. On appeal, the District Court also had confirmed the order of confiscation. In the assessment for the relevant asst. yr. 1974-75, the appellant claimed a sum of Rs. 8,526 as business loss. The claim of the appellant was negatived by the assessing authority. the assessee went up in appeal to the AAC contending that the loss was incurr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. The assessee, a registered firm, which carried on business in iron, cement, paddy and petroleum products, claimed in computing its profits deduction of sum of Rs. 1,233 paid as penalty to the Government of Orissa for supply of inferior quality of paddy and rice. All the assessing authorities rejected the claim of the assessee to deduct the penalty from the income. On a reference at the instanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee s; business; it was an unavoidable loss arising as one of the consequences of carrying on such business. The sum of Rs. 25,700 paid by the assessee by way of penalty to the Govt. was an admissible deduction in computing the profit under s. 10(1) of the Indian IT Act, 1922. Herein, the assessee could not deliver the paddy to the Food Corporation of India on account of Andhra agitation which was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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