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TMI Blog1996 (7) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... ons did not constitute the assessee's stock-in-trade and as such there could be no loss on account of the revaluation of the said trucks ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that assessee's claim squarely fell to be considered under section 36(1)(vii) read with section 36(2) and that it was not a trading loss entitled to deduction under section 28 ? 3. Whether, the Tribunal is justified in holding that the debts in question had not become bad during the accounting year under consideration and that the assessee was not entitled to a deduction of Rs. 1,00,000 in respect of the assessment year 1968-69 and of Rs. 7,924 in respect of the assessment year 1969-70 ?" The controvers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eri, Moradabad 4. 592 UPN 1149 1969 M. K. Singh, 13-5-67 51,000 Katighar, Moradabad -------------------------------------------------------------------------------------------------------------------------------------------------- Similarly, during the accounting period corresponding to the assessment year 1969-70, it is alleged that the following vehicles were taken into possession by the assessee-company on account of default in payment by the hire purchasers detailed in the chart given below : Vehicles repossessed in the accounting year 1968-69 (assessment year 1969-70) -------------------------------------------------------------------------------------------------------------------------------------------------- 1. 475 USU 466 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the real owner of the vehicles and, if so, whether the vehicles constitute a part of the stock-in-trade or whether it is a case of money-lending simpliciter and the claim of the assessee for deduction of the losses under consideration could be allowed as a bad debt. Learned counsel for the Revenue, Sri Ashok Kumar, submits that since the vehicles at the relevant time were registered in the names of the hire-purchasers, the vehicles cannot be taken into consideration as belonging to the assessee forming part of the stock-in-trade and, therefore, the claim as set up by the assessee is not maintainable being contrary to the provisions of section 36 read with section 28 of the Act. This factual position is not under dispute that the vehicles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loss caused to the assessee is not a trading loss claiming deduction under section 28 of the Act. However, according to the Tribunal, the assessee's claim comes under section 36(1)(vii) read with section 36(2) of the Act and accordingly benefit was given to the assessee holding that it is a bad debt and that debt became bad in the previous year, i.e., the trucks in question constituted the capital asset of the assessee and are entitled to get depreciation on the same. However, since the legal position as discussed above emerged that the vehicles cannot be construed to be the assessee's stock-in-trade, therefore, the question of any loss in revaluation of the said vehicles does not arise, and S. P. B. P. Srirangacharyulu [1965] 58 ITR 95 (A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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