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2013 (12) TMI 1574 - ITAT AHMEDABADDisallowance of advances for purchase of capital goods written off - Held that:- There is no material has been placed on record that the supplier of goods have refused to refund the advances given to them. There is no material on record as to what efforts were made by the assessee for recovering the advances. Therefore, under these circumstances, the ld.CIT(A) was not justified in treating the same as business loss and allowable u/s.37(1) of the Act. Thus, this ground of the Revenue’s appeal is allowed. Disallowance in respect of parts imported for SMS project - Held that:- We find that the assessee has not placed anything on record with regard to the contention that the assessee was unable to clear the parts due to inability to pay customs duties and other charges. The ld.CIT(A) has not given any finding that how much duty and other charges were payable by the assessee and how much has been paid by obtaining the parts even if it is assumed that non-clearance of parts by the assessee was resulted into business loss, then also the assessee is required to substantiate its claim by placing relevant material on record. So far the undisputed fact remains that the parts were to be utilized for commissioning of a new project, therefore, are in the nature of capital assets.The ld.CIT(A) has erred in not considering this aspect. After considering all aspects of the matter, we restore this issue back to the file of ld.CIT(A) to decide it afresh, after giving opportunity of hearing to the respective parties.
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