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2002 (9) TMI 34 - HC - Income Tax"Whether on the facts and circumstances of the case, the assessee is entitled to deduction of the sum of Rs. 51,18,950 being the amount debited to its account by United Exports and allocated to the assessee ?" When the assessee bona fide thought that there was no prospect of recovery of value of the goods which had sunk in the sea for which the bank had already made payment and debit entry was made by United Exports against the assessee, the loss arose during the previous year relevant to the assessment year in question. The mere fact that United Exports contested the liability is not a ground to hold that there was no accrual of liability. - we are satisfied that the loss occurred because of the loss of goods said to have exported by the foreign seller in the foreign soil. Accordingly, we do not approve the view of the Tribunal that the assessee is not entitled to claim the deduction of the amount as a business loss.
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