TMI Blog1988 (12) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... w at the instance of the Revenue. The question reads as under : "Whether, on the facts and in the circumstances of the case, the assessee is entitled to weighted deduction under section 35B(1)(a) of the Income-tax Act, 1961, of Rs. 10,000 in its assessment for the accounting period relevant to the assessment year 1971-72 ?" A similar question was referred by the Tribunal in the assessee's own ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imported electrical spare parts not taken delivery of by it from the Customs, either as a loss or expenditure, while computing its business income ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in upholding that the assessee-company was not entitled to deduction of Rs. 3,500 (forming part of Rs. 46,668) being the fees paid by it to Messrs. Insimax Corporat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not to take delivery of the goods and wrote off the amount of Rs. 43,168 being the purchase price of the spare parts and Rs. 3,500 being the fees paid to Messrs. Insimax Corporation, the total of which came to Rs. 46,668 as business loss. The Income-tax Officer rejected its claim on the ground that the loss was a loss on account of non-delivery by the assessee and it was not a loss in the normal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the departmental authorities as well as the Tribunal had failed to appreciate that the consignment containing spare parts was not traced by port/Customs authorities but was traced by the assessee's agents, Messrs. Insimax Corporation, Bombay, who were paid their fees of Rs. 3,500 for the purpose, When they traced the consignment, they informed the assessee that the spare parts in the consignmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is not on record as to how much time the agents took to trace the consignment. However, the assessee-company carries on its business and it is for the assessee to decide whether it was in its interest to clear the consignment or not as it would have amounted to waste of good money after bad money. It was business decision which the departmental authorities could not have questioned without any c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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