9911796707
TMI Blog1984 (4) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... efer the following three questions for the opinion of this court: " (1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the write-off of Rs. 6,50,922 could not be allowed as a business loss ? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that there was no indication of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. However, when the matter went before the Commissioner of Income-tax (Appeals), he chose to allow the appeal and, accordingly, he directed the deduction of the said amount as business loss. The Revenue took the matter in appeal to the Tribunal and the Tribunal held that the said sum of Rs. 6,50,922 was not a business loss but that it was incurred by the persons in management of the compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d parties of the two groups should be ignored and they cannot be treated as an asset or liability receivable or payable by either party to the arbitration award. The award also allotted various concerns as between the two groups exclusively. As a result of the said arrangement brought about by the arbitrator's award, the assessee-private limited company was exclusively taken over by N. Shanmugham ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee-company was managed by two groups, N. Shanmugham Chettiar's group and N. Veeraswamy Chettiar's group, each owning 50% interest in the company. As a result of the arbitrator's award, N. Shanmugham Chettiar's group came to own the entire shareholding in the assessee-company exclusively and N. Veeraswamy Chettiar's group had lost all interest in the assessee-company. As consideration for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chettiar's group and which was forgone by N. Shanmugham Chettiar's group can only be taken to be the personal expenses of N. Shanmugham Chettiar's group and not expenses incurred by the company for its business purposes. This is the view taken by the Tribunal and we are of the opinion that the Tribunal has come to the right conclusion in this case. In this view, no referable question of law ari ..... X X X X Extracts X X X X X X X X Extracts X X X X
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