TMI Blog1970 (12) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... ENT The assessee, Messrs. Laxmi Ginning and Oil Mills, Khanna, is a firm which owns a ginnery and oil mill. The assessment year in question is 1953-54, corresponding to which the previous year ended on May 30, 1952. In that year the assessee sold 495 maunds, 27 seers of oil, manufactured by it, to Amrit Banaspati Company Ltd. at the rate of Rs. 57-8-0 per maund, that is, for a total value of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing ground: "The assessee is still fighting the case in the High Court for recovery of the amount. Since the loss debited to the trading account has not been finally settled, the debit as created in the groundnut account cannot be allowed and the same is being added back." The assessee preferred an appeal against the disallowance of the loss but the Appellate Assistant Commissioner upheld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jected with the result that the assessee filed a petition under section 66(2) of the said Act which was allowed by this court and a direction was issued to the Income-tax Appellate Tribunal to state the case and refer the following question of law for opinion to this court: "Whether, on the facts and in the circumstances of the present case, the Tribunal was justified in upholding the disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad been finally decided. The loss was suffered by the assessee-firm in the accounting year relevant to the assessment year 1953-54, and if, as a result of litigation, it was found entitled to less amount than the amount claimed, the difference could be included in the assessable income of the assessee for the year during which the final decision of the litigation was made. Similarly, if the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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