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2015 (6) TMI 936 - ITAT PUNEDisallowance of breakage loss - assessee did not furnish party wise details of breakage/claim made or offered, that no such claim was made in the preceding year and that this is such an item which can be recycled and reused for making glass - CIT(A) deleted the disallowance - Held that:- From the various details furnished by the assessee in the paper book, we find the assessee has furnished the party wise details giving the credit note number and the amount allowed towards such breakage loss. The AO has not disputed the fact of filing of party wise details during the course of assessment proceedings in the remand proceedings. Therefore, the first objection by the AO that the assessee has not furnished the party wise details is not existing. Further, the basis of allowing 1% of the turnover towards breakage charges by the AO is not understood. If the AO was not satisfied due to the reasons mentioned by him, he could have disallowed the entire amount. However, he has not done so and allowed 1% of the turnover towards breakage. This otherwise indicates that he also accepts that there would be breakages. Merely because the assessee has not claimed such breakage loss in the preceding assessment year, the same in our opinion cannot be a ground to deny a legitimate claim made by the assessee in the impugned assessment year especially when the assessee has furnished the list of dealers to whom such credit notes were issued towards breakage loss and sample confirmations from such parties were also filed. - Decided in favour of assessee.
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