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1970 (9) TMI 31 - HC - Income TaxAssessee is a company manufacturing, among other things, medicines. Before May, 1959, the assessee used also to manufacture serum. The assessee appears to have suffered loss of income from the production of serum for a considerable number of years as a result of which the assessee finally decided to stop the manufacture of serum with effect from May, 1959. As a consequence of this stoppage certain animals which were kept by the assessee for the manufacture of serum became actually useless to it for its business. The assessee, therefore, sold away these animals. By reason of this sale the company suffered a loss - company claimed deduction of the said sum u/s 10(2)(viii) of the Indian Income-tax Act, 1922 – it could not be said that the animals had become useless on the closure of the assessee's business before the assessee was entitled to deduction of loss
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