9911796707
TMI Blog2002 (8) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... a deduction under the provisions of the Income-tax Act. - Accordingly, we answer the reference in favour of the Revenue and against the assessee. - - - - - Dated:- 12-8-2002 - Judge(s) : DR. MOTILAL B. NAIK., DALAVA SUBRAHMANYAM. JUDGMENT The judgment of the court was delivered by DR. MOTILAL B. NAIK J.-This reference is at the instance of the Revenue aggrieved by the order, dated November 29, 1978, passed by the Income tax Appellate Tribunal in I.T.A. No. 430/Hyderabad of 1976-77 relating to the assessment year 1974-75. The assessee is a registered firm deriving income from milling of paddy and sale of rice mainly by export to Kerala State. During the relevant accounting year ending on December 12, 1973, the Income-tax Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing question of law to this court for opinion. Question of law: "Whether the loss of Rs. 1,10,534 has to be allowed as deduction from the total income for the assessment year 1974-75?" We have noticed that the assessee, though had received the notice, none represented the assessee. Though the assessee failed to participate in the proceedings before this court, we proceed to decide the matter on the merits of the case and on the basis of the submissions made by Sri S. R. Ashok, learned senior counsel for the Revenue. The facts, which are not disputed, are that the Vigilance Cell of the State Government of Andhra Pradesh seized 1,110 quintals of rice from the premises of the assessee, viz., Kadakatla Rice Mill, Tadepalligudem. The ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessee as a result of the confiscation of the rice was due to infraction of certain provisions of law, such loss could not be treated as a commercial loss and as such the assessee is not entitled for a deduction. He further submitted that the Tribunal was not justified in granting deduction holding that the loss sustained by the assessee is a commercial loss. Admittedly, the Civil Supplies Department seized 1,110 quintals of rice from the premises of the assessee and the order of confiscation of the rice was passed, which was confirmed by the Supreme Court. As such this confiscation of the rice is as a result of violations of certain provisions of the Civil Supplies Act. That being so, it would be difficult for us to appreciat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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