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2020 (6) TMI 27 - AT - Income TaxDisallowance of business loss - HELD THAT:- For a small amount the authorities below should not have doubted the explanation of the assessee and others. The reasons given by the A.O. are merely a presumption which could not reject the explanation of assessee that he has suffered genuine business loss. The assessee furnished copy of the invoices and ledger account in support of the above explanation - the documentary evidences which have not been rebutted by the A.O. could not have been disbelieved by the A.O. on irrelevant reasons. A.O. did not examine the parties from whom assessee has purchased the items under reference which were later on sold to other parties when the above two parties refused to accept the goods from the assessee. We are of the view that the A.O. has failed to establish that loss suffered by the assessee is not genuine. There is no reason to sustain the addition - we set aside the Orders of the authorities below and delete the entire addition. In the result, appeal of the assessee is allowed.
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