TMI Blog1989 (3) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... rading loss for the assessment year 1975-76 ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal acted judicially in declining to admit the specific ground that the sum of Rs. 5,72,073 was allowable as additional cost of cereals in connection with the supply to the estate workers during the assessment year 1975-76 ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 5,72,073 was not an ascertainable liability so as to be allowable in the assessment year 1975-76 and could be allowed only in the year in which the disputes between Girdharilal Sardarmal and Warren Tea Group companies are finally settled ?" The assessment year involved is 1975-76 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d rice or atta. The said Girdharilal Sardarmal was to lift the allotment of the foodgrains as may be made by the said Government and was to take necessary steps to obtain despatch of rice and atta to the Group's. estate including the assessee so as to ensure regular supply of the aforesaid foodgrains according to the requirements of the Group Grain Distributing Officer. For the services so rendered, the said Girdharilal Sardarmal was entitled to a certain percentage on account of shrinkage of the allotted foodgrains that may take place during transporting, handling and storing of the foodgrains detailed in para 9 hereof, besides transporting charges, etc., also detailed in the schedule to the said agreement. The said agreement also containe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 18,54,523.98 with interest, costs, etc. The amount of Rs. 18,54,523.98 was stated to represent the amount advanced by the Warren Group of Tea companies including the assessee to the said handling agent between July, 1972, and January, 1974, for procurement of the foodgrains which, according to the said Group, the defendant had not procured and/or supplied and so the said claim in respect of the said amount of Rs. 18,54,523.98 represented money received by the said handling agent for the use of the said Group. This suit of the assessee was met by the said handling agent by an application under section 34 of the Arbitration Act, 1940, as, according to them, the dispute involved in the said suit was covered by the arbitration clause refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reement dated July 1, 1972, and that large sum of moneys were due and owing by the Warren Group of Tea companies including the assessee to them. It was further stated that it was untrue that any amount was payable by the said handling agent to the Warren Group of Tea companies, as alleged in the plaint of the aforesaid suit filed by them against Girdharilal Sardarmal. Further, we find from the written statement filed by the said handling agent in Suit No. 31 of 1975, filed by Dekhari Tea Co. Ltd., that the stand of the said handling agent is that the Warren Tea Group has no claim against them. On the contrary, they owed to the handling agent a sum of Rs. 3,14,130.75 together with interest. On the above facts, the Income-tax Officer held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loyees. The Tribunal was of the view that the second point cannot be allowed to be urged. On the first point, the Tribunal held that it was not proved that the assessee had incurred the alleged loss of Rs. 5,72,073 in the year under consideration as claimed. Dr. Pal, on behalf of the assessee, has contended that there is no dispute that the expenditure was incurred by the assessee. There is no dispute that money was given to the handling agent, Girdharilal Sardarmal, for the purpose of purchasing foodstuff for the workers of the various tea estates of the company. The claim of Girdharilal Sardarmal which has been annexed to the paper book is that it has a claim against the assessee-company. The claim of Girdharilal Sardarmal is not that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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