Commissioner Of Income-Tax vs Indian Turpentine & Rosin Co. Ltd. on 30 November, 1979
During the course of hearing, two judgments have been cited.
The first at the hands of the learned counsel for the respondent-revenue
namely, Commissioner of Income-Tax, Lucknow v. Indian Turpentine &
Rosin Co. Ltd. (1980) 124 ITR 830. In the case relied upon by the learned
counsel for the respondent-revenue, in the previous year relevant to the
assessment year 1966-67, the respondent-assessee despatched certain goods
to Madras. Necessary entries were recorded in the books of account,
I.T.R.No.59 of 1991 4
wherein, the goods were debited in the purchaser's account and the sale
proceeds were credited in the account of the respondent-assessee. The
purchaser of the goods did not accept the goods. Thereafter, on the
instructions of the respondent-assessee, the goods were sold. The assessee
received the sale proceeds in the same assessment year, namely, 1966-67.
Instead of reversing the entries of the previous year relevant to the
assessment year 1967-68, the respondent-assessee credited the sales account
and debited the stores account. On account of the aforestated mistake, the
respondent-assessee was shown to have made a profit, and when, this
mistake was detected in the previous year relevant to the assessment year
1969-70, the respondent-assessee attempted to correct the entries wherein
the loss was claimed as a deduction. The Allahabad High Court while
disposing of the aforesaid controversy arrived at the conclusion that the loss
could not have been claimed as a deduction in the assessment year 1969-70.