COMMISSIONER OF INCOME TAX Vs. ASHA SOOD

JUDGEMENT

(1.) THE assessee carried on business of collecting bristles for expoet. The export business yielded import entitlements of various amounts form the Nepal Government. The assessee sold them for a sum of Rs. 1,61,380/- in April, 1967 relevant to the asst. yr. 1968-69. The assessee returned a loss of Rs. 1,52,502/-. It sought to set off the sale price of the import entitlements, namely, Rs. 1,61,380/- against the loss. This was disallowed, and the same was affirmed in appeal as well as by the Tribunal in second appeal.

(2.) AT the instance of the assessee, the Tribunal has referred the following questions for our opinion : 1. "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the import entitlements were not capital assets as on 1st April, 1967 ?" 2. "Whether on the facts and in the circumstances of the case the Tribunal was justified in not taking into consideration the loss of Rs. 152,502/- claimed by the cost price for acquisition or acquiring import entitlements"?

(3.) IN respect of the second question, the Tribunal has found that the loss in the exports were not determined or proved and, therefore, could not determined or proved and, therefore, could not be taken into consideration. There was no evidence to show that as and when the assessee exported, it became entitled to any entitlements. The loss, therefore could not be taken into account. These are findings on questions of fact. On the basis of these facts and findings, the Tribunal was perfectly justified in not taking into consideration alleged loss.