9911796707
TMI Blog1979 (2) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate Tribunal has referred the following question : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is not entitled to claim the loss of Rs. 27,000 under section 36(i)(vi) of the Income-tax Act, 1961 ? " The assessee is the owner of race horses using them for the purpose of earning income from the races. The assessee sold t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal which has given rise to the present reference. Section 36(1)(vi), in so far as it relates to the present case, runs as follows: " 36. (1) The deductions provided for in the following clauses shall be allowed in respect of the matters dealt with therein, in computing the income referred to in section 28- . ...... (vi) in respect of animals which have been used for the purposes of the bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration for a short time and on 14-1-1969 the certificate finally came to be revoked." It is seen from this finding that the horse had become permanently useless because without a certificate from the race club the horse could not have been used in the races. The fact of revocation of the certificate had been intimated to the race clubs at Calcutta and Bangalore as the said horse had been running ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h what had been found earlier in the passage which we have extracted already. Further, the Tribunal is wrong in its view that the assessee must discontinue his business in order to get the deduction. Section 28 of the Act opens with the words " the following income shall be chargeable to income-tax under the head 'profits and gains of any business or profession' which was carried on by the at any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... become permanently useless, as the finding given earlier clearly states that the certificate finally came to be revoked and the same fact was intimated to the other race clubs also. As already pointed out, when the certificate is revoked, the horse would be useless for participating in races, and there can be no doubt about its having become permanently useless, for the purpose of the business of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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