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2014 (3) TMI 464 - AT - Income TaxDeletion on account of shortage of stock Failure to make satisfactory explanation Held that:- The findings of the CIT(A) upheld CIT(A) was of the view that there cannot be a straight jacket formula in case of such type of materials for determing the amount of shortage year to year - The percentage of the loss can vary from case to case, year to year and from place to place - The main criteria for the Assessing Officer are to establish that the loss/shortages claimed by the assessee is excessive and bogus which he has failed to do so - thus, in the absence of any direct link or remark by the Assesing Officer to prove the non-genuineness of the shortage claimed, the estimated disallowance is set aside - Revenue could not point out any defect or any error in the order of CIT(A) that loss cannot increase to 5% to 6% from 1 to 2% as declared in earlier years - Since revenue could not bring out any discrepancy thus, the CIT(A) has rightly deleted the addition Decided against Revenue. Restriction of disallowance u.s 14A of the Act r.w. Rule 8D of the Act Held that:- The AO made disallowance of expenses related to exempted income by applying Rule 8D of the I. T. Rules, 1962 for the reasons that the assessee has not added back any expense qua exempted income - the CIT(A) has considered that the AO has not recorded any satisfaction or proved any link to extablish that borrowed funds were utilised for the purpose of investment in shares - thus, he has rightly restricted the addition Decided against Revenue.
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