TMI Blog1967 (3) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the case, the sum of Rs. 12,000 was an admissible deduction in working out the assessable income for the assessment year 1961-62?" The statement of the case relates to the assessment year 1961-62, the accounting year being January 1, 1960, to March 31, 1961. The assessee is a registered firm carrying on business as a commission agent for vanaspati, ghee, soap, refined oil, etc. In the assessment year in question he was agent of M/s. Berar Oil Industries, Akola, in Madhya Pradesh, and Tung Bhadra Industries, Kurnool, in Andhra Pradesh. On January 4, 1960, the manager of the assessee handed over to one Prem Narain, an employee of M/s. Bharat Textiles, a sister concern of the assessee, a sum of Rs. 13,000 in order to depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess ". We have heard Mr. Tewari on behalf of the assessee and Mr. Gulati for the department. The assessee was dispossessed of the sum of Rs. 12,000 on January 4, 1960. But, mere dispossession is not loss. A dispossession would become a loss only after the recovery becomes impossible or the chances of recovery become very remote. Besides, there must be the consciousness of loss in the mind of the person who has been dispossessed of the money or property before it can be treated to be a loss and not mere dispossession. From the statement of case it is clear that, even though on January 4, 1960, the entire sum of Rs. 13,100 was stolen, the very same day a recovery of Rs.1,100 was made. The fact that a considerable amount of the sum was recov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that it should have been made in the preceding assessment year. From the statement of the case it is clear and there is no dispute whatsoever between the parties that the sum of Rs. 12,000 was actually lost to the assessee. From the statement of the case it is also clear that the sum of Rs. 13,000 was given to Sri Prem Narain so that the money could be paid in the Nayaganj branch of the State Bank in order to honour the hundi of Rs. 21,000 of M/s. Berar Oil Industries. We have already stated earlier that the assessee was agent of M/s. Berar Oil Industries. Admittedly, the hundi was in respect of a business transaction between the assessee and M/s. Berar Oil Industries. Consequently, there is no escape from the conclusion that the sum o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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