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2010 (2) TMI 771 - ITAT, NEW DELHIAddition on account of suppression of closing stock. - addition on account of commission and on account of brokerage of office space. - addition on account of bad debts written off - addition on account of sales tax - Held that:- for examining whether the repairing charges were wrongly debited to fabrication charges or not. If that is the fact then no addition is called for but if repairing charges are paid separately and fabrication charges are paid separately then the assessee has to explain as to what happened to those nets, which were fabricated by the assessee because the same should either be included in sales or in closing stock. With these observations, remand back to AO. Disallowance of commission and brokerage. - Assessee should furnish the confirmation from M/s Vishal Agencies and should also explain the discrepancy in the amount of sales to M/s RITES Ltd.. Necessary agreement and correspondence in connection with commission should also be produced. With these observations, remand back to AO. Bad debt Write off Held that :- Advance given for the interior work of the office become unrecoverable. these are not allowable as bad debts but should be allowed as business loss. decided in favor of Assessee. Regarding addition made on the basis of Sales Tax. Assessee should furnish a copy of the sales tax assessment order before the Assessing Officer and thereafter the Assessing Officer should pass necessary order as per law after providing adequate opportunity of being heard to the assessee. With these observations, remand back to AO.
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