BANSIDHAR ONKARMAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE question that has been referred by the Income -tax Appellate Tribunal, Calcutta Branch, Patna to us for opinion as follows : -

(2.) THE assessee carries on the business of selling yarn, speculating on cotton and money -lending. He claimed deduction of Rs. 8,675 in respect of the accounting year commencing from October 21, 1941, and ending on December 8, 1942, on the ground that the said sum was stolen from the iron safe inside his shop by one Jauhar Mal who was a relation of the assessee and who was also working as the accountant of his firm during the year in question. The shop of the assessee used to be closed at about 8 p.m., and the iron safe containing the cash used to remain inside the shop. It was found by all the Income -tax authorities that the said Jauhar Mal secured the keys of the shops after 8 p.m., entered the shop at about 10 p.m., opened the iron safe and removed Rs. 8,995.

(3.) THE aforesaid view is supported by the following observations of Rowlatt, J., in Curtis v. J. and G. Old filed Ltd. : -