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2021 (3) TMI 1048 - AT - Income TaxAddition on account of stock losses & diminution - AO made the addition in absence of documentary proof regarding clear & verifiable evidence in support of the expenditure claimed by the assessee - HELD THAT:- In the circumstances, where the assessee deals in thousands of stocks of goods, it is practically impossible to verify each and every aspect of claim of shrinkage, theft and expiry written off. But the assessee should explain the basis and the criteria of claim. As rightly pointed out by the Ld.DR, the A.O. should not be deprived to verify the facts on sample basis or in full and make enquiries and shall take a decision considering the assessee’s past record. The revenue should be provided a minimum opportunity to verify the facts submitted by the assessee for the first time before the Ld.CIT(A) - We notice that though the information was submitted for the first time before the appellate authority, the Ld.CIT(A) having accepted the evidences should have called for the comments of the A.O. on vital specific issues before deciding the assessee appeal - We provide an opportunity to the revenue by restoring the disputed issue for limited purpose to the file of the CIT(A) to call for the remand report from the AO and also adequate opportunity of hearing be provided to the assessee and pass a reasonable and speaking order and allow this ground of appeal of the revenue for statistical purposes. Addition on account of depreciation of ‘Bizerba weighing scales’ - AO has made the addition as the depreciation was claimed @ 60% on said plant and machinery instead of 15% as this was not forming part of computer and independent computers items - HELD THAT:- In assessee’s own case for the earlier assessment year relying on CIT Vs. BSES Yamuna Power Ltd., [2010 (8) TMI 58 - DELHI HIGH COURT] claim of depreciation @ 60% on Bizerba weighting scales is concerned, in our opinion nothing has been on record to demonstrate that this particular asset functions integral part of computer and cannot function independently. A photocopy (xerox) machine can also be attached to a computer, however, that does not entitle it for depreciation @ 60%. CIT(A) has allowed assessee’s claim of depreciation on the weighing scales without proper reasoning. Therefore, while allowing assessee’s claim of depreciation on printer, router, scanner, switches, etc. We uphold disallowance of assessee’s claim of depreciation on bizerba weighing scales @ 60%. Disallowance u/s 14A r.w.r. 8D - HELD THAT:- Since, the appellant had not earned any exempt income during the year under consideration and the facts are similar to earlier years i.e AY 2011-12 & 2012-13 where the company had not earned exempt income. The same were adjudicated in favour of appellant’s successor. Therefore, have no reason to deviate from the findings given by my processor in above mentioned cases of the successor or appellant. In view of these facts, the appeal of the appellant on this ground is allowed and the disallowance made by the AO is deleted. Books of accounts the doubtful debts and advances written off - AO found that out of the said amount being insurance claim is receivable has been written off - CIT(A) considered the submissions of the assessee and allowed the claim of the assessee - HELD THAT:- AR supported the orders of the CIT(A) and relied on the judicial decisions. Accordingly we are not inclined to interfere with the findings of the CIT(A) on this disputed issue and upheld the same and dismiss the ground of appeal of the revenue. The revenue appeal is partly allowed for statistical purposes.
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