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2019 (11) TMI 1177 - AT - Income TaxClaim of loss due to rejection of goods - loss claimed by the assessee was not to be accepted, for the reason, that the correspondence and the joint declaration filed by them did not inspire much confidence - HELD THAT:- It is not a case that the revenue had placed on record any irrefutable documentary evidence which would dislodge the authenticity of the aforesaid claim of the assessee. As regards the observations of the A.O, that now when the goods exported to M/s Ammetal FZCO, UAE were rejected, then as to why the same were not included in the inventory of the assessee, we are afraid is an absolute fallacious and misconceived view. It is not a case where the goods after having been rejected were received back by the assessee. In fact, it is a case where the goods exported on being rejected were sold at an amount below the sale price. We have given a thoughtful consideration to the observations of the lower authorities and find no justifiable reason as to why the duly substantiated claim of loss suffered by the assessee in the normal course of its business of export was not to be allowed while computing its income for the year under consideration. We thus not being able to persuade ourselves to subscribe to the view taken by the lower authorities, therein set aside the order of the CIT(A) and delete the additions/disallowance made by the A.O. - Decided in favour of assessee.
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