TMI Blog1983 (12) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... th on facts and in law. 3. The above question had come up for the consideration of the Tribunal in the asst. yr. 1978-79 in I.T.A. No. 24 (Alld)/1983. The Tribunal vide order dt. 4th Aug., 1983 had held that since the CIT (A) had not passed any order on the issue relating to cancellation of registration and had maintained the status of registered firm as was granted by the IAC, the question of changing the status of an AOP did not arise. The Tribunal also observed that the observations of the CIT (A) that the correct status of the entity should be that of an AOP was rather an irrelevant exercise so far as the present assessee was concerned and, therefore, the contention of the assessee regarding the status did not arise out of his order. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lance of Rs. 27,000. 5. The assessee appealed to the CIT (A). It was submitted before him that the loss had arisen because of the goods by the Excise authorities with the prohibition imposed in the Lucknow area w.e.f. 1st April, 1979. The CIT (A) also did not accept the claim and confirmed the disallowance. 6. The assessee is not in appeal before us. The ld. counsel for the assessee submitted before us that as per the notification dt. 30th March, 1978, prohibition was imposed, among others, in Lucknow area w.e.f. 1st April, 1978. He also submitted before us a copy of the above notifications. He further submitted that the assessee approached the High Court and the High Court vide its order dt. 23rd June, 1978, allowed the sale of stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Lucknow. He also placed before us to details to stocks, the sales made and the balance shown as loss leaving no closing stock in the books. The ld. Departmental Representative, on the other hand, submitted that no special case had been made out by the assessee and that the normal breakage alone was to be allowed as was done by the IAC. 7. After a careful consideration of the facts, we are of the opinion that the assessee is entitled to the deduction of the entire loss of Rs. 31,095. We have gone through the details of stock. We find that the opening stock was of Rs. 6,44,154. There were sales from time to time as per the order of the High Court and the balance of Rs. 31,095 was written off. The assessee was left with no closing stock. O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited the amount realised from the customers and had also made disbursement out of it. He however, confirmed the addition on the ground that the expenditure incurred out of the above amount was not of charitable nature as was held by the IAC. On this ground, he distinguished the case of assessee from that of the Supreme Court in CIT vs. Bijli Cotton Mills (P) Ltd. (1979) 8 CTR (SC) 1 : (1979) 116 ITR 60 (SC). 10. Here also the assessee is in appeal before us. In our opinion, the assessee's case cannot be distinguished from that of Bijli Cotton Mills. It was held in this case that when the customers or the brokers paid the amounts to the assessee earmarking them for 'dharmada', those payments were validly earmarked for charity. In other wo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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