1969 (2) TMI 23

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..... he purpose of section 23A - - - - - Dated:- 19-2-1969 - Judge(s) : VEERASWAMI., RAMAPRASADA RAO. JUDGMENT The judgment of the court was delivered by VEERASWAMI J.-The facts in this reference are the same and the questions are: " 1. Whether, on the facts and circumstances of the case, the provisions of section 23A of the Income-tax Act, 1922, are attracted ? 2. Whether, on the facts .....

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..... efore us to conclude that this is a legitimately permitted business loss. We do not even know whether the farm is within the objects of the assessee-company. In such circumstances, we are of opinion that the Tribunal was right in taking this amount into account in computing the commercial profits. The other amount, in our view, stands on a different footing. The assessee's business is peculiar w .....

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..... s likely to be enforced against the assessee. We cannot say that, in the particular circumstance we have mentioned, the board of directors conduced themselves without reference to business considerations or were unreasonable in setting apart the reserve to meet the possible liability. In our opinion, it is not necessary that, in order to exclude from computation of commercial profits, the reservat .....

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