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2012 (6) TMI 512 - ITAT MUMBAIWrite off of obsolete Stock - consequent write back of liability of foreign creditor and offering the same for taxation - dis-allowance of loss on ground that there were no details to show that the assessee was under instructions by the foreign party to write off the liability - Held that:- How a negative fact can be proved when the assessee submits that they have imported the goods and the same could not sold in so many years and with the consent of Commercial Tax authorities destroyed the goods, the fact of which was accepted by the other authority. The books of account also represents the same situation. Also, it is on record that assessee wrote back the liability in the P/L Account and offered for taxation. claim of loss of stock is genuine and hence allowed - Decided in favor of assessee. Dis-allowance of 50% of the expenditure on the reason that the assessee does not have any business activity - Held that:- Since the assessee has been in the business during the year and has other income and claimed a meagre amount of Rs.1,64,828/- as expenditure, which is just enough even for maintaining its corporate identity, we are of the opinion that disallowing 50% of the amount is not warranted and is arbitrary. Penalty u/s 271(1)(c) - Held that:- There is no reason for levy of penalty as the basis for levy of penalty was disallowance of the claim which was allowed therein - Decided in favor of assessee.
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