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2015 (9) TMI 998 - AT - Income TaxDisallowance of claim of the assessee for shortage - claim of double deduction at the time of purchase and the shortage at the time of sale - Held that:- We are unable to accept the contention of the learned D.R. The shortage at the time of purchase and the shortage at the time of sale are two different issues and it cannot be said by any stretch of imagination that once the assessee has claimed shortage at the time of purchase, he cannot claim shortage at the time of sales. In the present case, the claim of the assessee for shortage at the time of sale was duly supported by the certificate issued by the concerned customer confirming the shortage and the Ld. CIT(A) in our opinion was not justified in confirming the disallowance made by the A.O. on account of such shortage. We, therefore, set aside his impugned order on this issue and direct the A.O. to delete the addition made on account of shortage. - Decided in favour of assessee. Disallowance under section 40A(3) - cash payment - Held that:- The work of unloading maize from lorries and loading the same into railway wagons some times was done in the late evenings and since the payments on account of Hamali Charges were required to be made by the concerned contractor to Hammals immediately after the completion of the work, he demanded payments in cash which the assessee was compelled to make. - In our opinion, this stand taken by the assessee before the Ld. CIT(A), which was duly supported by cogent evidence in the form of confirmation certificate issued by the concerned contractor, is sufficient to show that the impugned payments in cash were made by the assessee in the exceptional circumstances as specified in Rule 6DD of the I.T. Rules, 1962 and therefore, no disallowance under section 40A(3) is called for such cash payments.- Decided in favour of assessee.
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