TMI Blog1986 (7) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... against the judgment of the High Court of Orissa and raises the familiar question whether a loss suffered by the assessee is a capital loss or a revenue loss. The assessee deals in automobiles and also sells spare motor parts. For the assessment year 1963-64, the relevant accounting period being the year ended March 31, 1963, the assessee claimed a loss of ₹ 53,650 sustained by it on disposing of its subscription to the Orissa Government Floated Loan, 1972. It claimed that the loss suffered by it was revenue loss and, therefore, deductible against its profits for the year. The Income-tax Officer disallowed the loss in the view that it was a capital loss. The assessee's appeal was dismissed by the Appellate Assistant Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal in its appellate order. The court may do so only if there is no evidence to support them or the Appellate Tribunal has misdirected itself in law in arriving at the findings of fact. But even there, the court cannot disturb the findings of fact given by the Appellate Tribunal unless a challenge is directed specifically by a question framed in a reference against the validity of the impugned findings of fact on the ground that there is no evidence to support them or they are the result of a misdirection in law. There is a long line of cases decided by this court laying down this proposition. See India Cements Ltd. v. CIT [1966] 60 ITR 52, 64 (SC), Hazarat Pirmahomed Shah Saheb Roza Committee v. CIT [1967] 63 ITR 490, 495, 496 (SC), C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st over 20 years, and it is appropriate that it should be disposed of now without further delay. According to the statement of the case drawn up on the basis of the appellate order of the Appellate Tribunal, the assessee was told that if it subscribed for the Government Loan, preferential treatment would be granted to it in the placing of orders for motor vehicles required by the various Government Departments and to the further benefit of an advance from the Government up to 50 per cent. of the value of the orders placed. Pursuant to that understanding, an advance to the extent of ₹ 18,37,062 was received by the assessee and a circular was also issued by the State Government to various Departments to make purchases of the vehicles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not connected with the orders placed by the Government with the assessee and the advance payment made by the Government Departments to the assessee, and it was in that context that the High Court held that the investment in the loan was capital asset and the loss was a capital loss. The High Court took the view that the investment was of enduring benefit to the assessee and, therefore, it could not be allowed. We find it difficult to hold that an enduring benefit was brought about by the assessee investing in the loan. So far as orders from the Government Departments were concerned, the material on record shows that on August 30, 1961, it was decided to purchase 16 jeeps, 8 trucks and 4 one tonne pick-up vans. There is nothing to show t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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