1991 (7) TMI 144

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..... d CIT(A)-II,New Delhihas erred both on facts and in law in directing to allow the loss incurred by the assessee on discounting the chits. The ld. CIT(A) has filed to appreciate that in view of the decision of the Punjab & Haryana High Court in M/s. Soda Silicate & Chemical Works vs. CIT (1989) 179 ITR 589 (P&H) the discount amount was not allowable as business loss." 2. In the assessment order is .....

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..... bscribed, amounts received and loss sustained, etc. The CIT(A) found that the loss on account of chits was sustained during the course of the assessee's business and the moneys received on chits were utilised for the purpose of business. In view of these findings, the assessee's claim for loss was accepted and the addition made by the Assessing Officer was deleted. 3. We have heard learned author .....

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..... in allowing assessee's claim for loss. In taking this view we are fortified by the decision of the Andhra Pradesh High Court in the case of Kovur Textiles & Co. The decision of the Punjab & Haryana High Court in the case cited on behalf of the Revenue is no doubt against the assessee. It is, however, well settled that the view favourable to the assessee should be followed. In the instant case on .....

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