TMI Blog1994 (10) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... se expenses was settled during the year relevant to asst. yr. 1986-87. 3. The learned Departmental Representative submitted that the assessee was maintaining its books of account on mercantile basis and hence the expenditure pertaining to earlier years could not be considered as a charge on the profits for the year under consideration. 4. Shri Hari Om Arora, the learned counsel for the assessee, strongly supported the impugned order. 5. After carefully considering the submissions of the parties, we uphold the order of the learned CIT(A) because the liability of the expenditure claimed was settled in the year under consideration. 6. In the result, the appeal is dismissed. 7. Now we come to assessee's appeal (ITA No. 1339/Chand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther effective ground is against the confirmation of disallowance of Rs. 9,158. Brief facts in this regard are these. The assessee had done spinning work for Sadhoushi Woollen Mills in the immediately preceding year and the raw material received was 1915.7 kg. The yarn produced and delivered to the said party was 1590.4 kg. The waste came to 325.3 kg. M/s Sadhoushi Woollen Mills did not accept the excessive wastage and accepted it only to the extent of 10% which came to 119.57 kg. The remaining wastage of 133.8 kg was taken by the assessee and the amount of Rs. 9,158 which was receivable by the assessee as fabrication charges from M/s Sadhoushi Woollen Mills, was written off. The assessee claimed that since the amount had been written off i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from that party. The Assessing Officer could have easily found out from the other party whether the facts narrated by the assessee were correct or not. This was, however, not done. The books of the assessee cannot be disbelieved for want of a confirmation or in the absence of any documentary evidence. The assessee has given all the facts and has shown the sale of 191.5 kg of waste. Since the matter has been settled by the assessee in the year under consideration, the relief was admissible in the year under consideration only. Now that the claim has been restricted to Rs. 6,194, the Assessing Officer is directed to allow this claim of the assessee which had been written off in the year under consideration. This ground is, therefore, partly ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
