Law:

Section:

Income tax---Loss Loss by fire Assessee carrying on business of manufacture and sale of biris Claim that articles and cash in shop were destroyed by fire No evidence to show that goods and account books were in shop when set on fire No mention in F. I. R. of destruction of books of account by fire Loss due to fire not allowable. C. I: T. v. Nathmal Tolaram (1973) 88 I T R 234 (Gauhati) distinguished. Kedarnath Jute Mfg. Co. Ltd. v. C. I. T. (1971) 82 I T 12 363 (S C) ; C. I. T. v. Brijmohan Das Laxman Das (1979) 117 I T R 121 (All.) ; Deep Chand Shyani Sunder v. C. I-T. (1980) 125 I T R 724 (All.) ; Vishwanath Seth v. C. I. T. (1980) 123 I T R 29 (All.) and Chowringhee Sales Bureau P. Ltd. v. C. I. T. (1977) 110 I T R 385 (Cal.) rel. Banwari Lal Madan Mohan v. C. I: T. (1978) 113 I T R 362 (All.); Chow¬riaghee Sales Bureau P. Ltd. v. C. I. T. (1973) 87 1 T R 542 (S C) : C. I: T. v. Ban wari Lal Madan Mohan (1977) 110 I T R 868 (All.).; C. I. T. v. Kumardhubi Engineering Works Ltd. (1978) 115 I T R 58 (Cal.) and Sinclair Murray & Co. P. Ltd. v. C. I. T. (1974) 97 I T R 615 (S C) ref. JUDGMENT SINHA, J. The Income tax Appellate Tribunal has referred the following two questions for the opinion of this Court "(1) Whether, on the facts and in the circumstances of the case, there was any material for the Tribunal to disallow the sum of Rs. 20,795 on account of loss by fire ? (2) Whether, on the facts and in the circumstances of the case, the payment of sales tax composition fee of Rs. 1,91,887 was an allowable expenditure for the assessment year 1968 69 ?" The facts relevant to the first question are as follows:-- The assessee deals in the business of manufacture and sale of biris. In the previous year relevant to the assessment year 1968 69, the shop of the assessee at Meerganj was set on fire in communal disturbance. According to the assessee, a wall clock of the value of Rs. 100, 40 bags of biris valued at Rs. 10,400, match boxes of the value of Rs. 3,794, furniture worth Rs. 1,500 and cash amount of Rs. 5,000 were burnt. The total loss was calculated by him at Rs. 20,795 and he claimed the deduction thereof from the income of the year. The I. T. O. did not…

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