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2019 (9) TMI 1485 - AT - Income TaxDisallowance on account of bad debt - HELD THAT:- Hon’ble Supreme Court in the case of CIT Mysore Sugar Company Ltd [1962 (5) TMI 3 - SUPREME COURT] wherein it is held that in case the company has advanced money to sugarcane grower for purchase of sugarcane and when they were unable to purchase sugarcane, the amount was written off and claimed as trading loss and the same was allowed. We do not find any error in the decision of ld. CIT(A) in allowing the claim of advances written off which were given in the ordinary course of business by the assessee. Accordingly, we do not find any merit in the appeal of the revenue and cross of the assessee, therefore, the cross objection of the assessee and appeal of the revenue both are dismissed. Disallowance of written off salary advance - HELD THAT:- AO disallowed the salary written off stating that the assessee has failed to prove that the person to whom salary given were its employees and has also not proved that the same was included in computing the income of the assessee for earlier years and for the year under consideration. The assessee has failed to substantiate with relevant material that the salary advances were given to its employees employed with it. Disallowance on account of loss of stock by obsolescence - AO disallowed the claim of loss on account of absolescene of stock of fish stating that valuation shown by the assessee on the basis of stock or net realizing value cannot be accepted on the basis of evidence available on local sale account - HELD THAT:- As assessee has brought the unsold stock from the earlier years and no production of Surmai fish was made during the year under consideration. It is further noticed that the closing stock for the year under consideration has been accepted by the assessing officer as opening stock for the subsequent year without any variation. We observed that assessing officer has not elaborated the detailed reasons with specific finding for rejecting the claim of loss of stock by absolescence on account of unsold old stock of fish which are of perishable nature. We do not find any infirmity in the decision of ld. CIT(A) in deleting the addition made by the assessing officer. Therefore, we do not find any force in the appeal of the revenue and the same is dismissed.
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