TMI Blog1979 (7) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... as, at the instance of the assessee, referred the following question of law for the opinion of this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in not allowing the alleged loss of Rs. 30,000 ? " The assessee runs a cold storage, and in its return for the year 1966-67, it had debited an amount of Rs. 30,000 as loss in its profit and loss acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it back to the trial court with a direction that the court should levy the appropriate stamp duty and penalty, and ask the plaintiff to make good the deficiency. It also appears from the statement of the case that the assessee contemplated taking up the matter before the Supreme Court, when this question was being considered by the Tribunal. As would be apparent from the recitals above, the ITO d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Swadeshi Cotton and Flour Mills P. Ltd. [1964] 53 ITR 134 (SC), dealing with a case where an award for bonus for earlier years was made in a subsequent year, it was held that deduction for the amount of bonus under the award could be allowed only in the previous year in which the award was given. These cases exemplify the principle that even in a case where mercantile system is followed, the lia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his court, no decree was passed on the award by the court, and as such no liability in praesenti was created against the assessee. The liability being merely contingent, no deduction in respect thereof could be made from the income of the assessee. The decision of this court in the case of CIT v. Mathulal Baldeo Prasad [1961] 42 ITR 517 (All) is not in point, for, in that case, the assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X
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