The loss was incurred in the course of business being carried out by the assessee and non-payment of the duty would have resulted in substantial losses for the assessee and damaged the assessee’s reputation in the market. Thus the loss would be allowable to the assessee as a business loss out of commercial expediency.( AY.2006-07, 2008-09)
Mihir Bipin Parekh v. Dy. CIT (2020) 79 ITR 5 ( SN) ( Mum) (Trib)
S.28(i): Business Loss — Import duty —Non-payment of duty would have resulted in substantial losses for assessee and damaged reputation in market — Loss is allowable as business Loss out of commercial expediency .[ S.37(i) ]