TMI Blog2011 (6) TMI 929X X X X Extracts X X X X X X X X Extracts X X X X ..... hich was engaged in the business of hosiery goods suffered loss on account of fire at its factory premises on 16/17 Dec. 2005, i.e., in the year under appeal. The assessee furnished calculations of its loss before the AO, which reads as under: The assessee has given calculation as to how the surveyor has estimated the loss of ₹ 19.68 lacs claimed by the assessee i.e. Total stock as on date of fire ₹ 1,34,15,820/- Unaffected stock ₹ 21,82,264/- Stock affected ₹ 1,12,33,556/- Claim filed with Insurance Co. ₹ 112.33 lacs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of loss is hereby confirmed and the appellant fails on this ground. 5. Aggrieved by the order passed by the ld. CIT(A), the assessee is now in appeal before this Tribunal. In support of appeal, the ld. authorized representative for the assessee made three-fold submissions before us. His first submission was that the fact that the loss by fire was caused in the year under appeal, was not disputed by the Department and therefore such ought to have been considered for deduction in the year under appeal. His second submission was that mere difficulty in estimation of loss or settlement of claim by the Insurance company in subsequent years, would not convert accrued liability in the year under appeal as contingent liability or conditional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r under appeal. Besides, the fact that the assessee has suffered loss is not disputed. Thus the loss suffered by the assessee is real. It cannot be said that the liability arising on account of damage/destruction of stock in the year under appeal is a contingent or conditional one. Therefore the liability is required to be considered for allowance in the year under appeal and in no other year. The mere fact that the insurance company has settled the claim in subsequent year is irrelevant as the loss has been suffered and therefore arisen in the year under appeal. The aforesaid view is well supported by the judgment of the Hon ble Punjab High Court in CIT v. Tulsi Ram Karam Chand, 51 ITR 180 (Pun.) in which it has been held that the claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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