Allowing the appeal of the assessee the Court held that as per the franchise agreement loss to be borne by the assessee. Though no details were furnished payment details were furnished. Court observed that in the business of running a showroom for wearing apparels, shortage of stock is not an unusual phenomenon. Accordingly claim of the assessee is allowed. (ITA No. 918 of 2015 dt. 5-08-2019)
P.H. Kumar & Co. v. ITO ( 2019) CTCJ-September-P. 96 (Delhi)(HC)
S. 28(i) : Business loss-Shortage of goods –Running of show room-Franchise agreement-Payment made to the company–Loss is held to be allowable. [S. 37(i)]