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2022 (5) TMI 354 - AT - Income TaxDisallowing the debit note issued by the assessee on account of transit loss - HELD THAT:- There is no dispute that the assessee has duly shown the debit notes in the ledger accounts of the purchasers and claimed the same on account of loss in transit. In order to verify the correctness of the claim, the AO issued notices under Section 133(6) of the Income Tax Act. However, except one party namely M/s Heinz India Private Limited Gaziabad, none has responded to the notices issued by the AO under Section 133(6). The AO has mentioned in the assessment order that the assessment is time barring on 31st March, 2015 and accordingly the remaining claim of the loss in transit was added for want of any material in support of the claim. AO has not asked the assessee to furnish confirmation because of time constrain as the impugned order was passed on 30th March, 2015 just one day before the limitation, which is also mentioned by the AO in the assessment order at the bottom of Page No. 2 It is clear that the CIT(A) has not even considered the confirmation filed by the assessee while deciding this issue. Thus, it is apparent from the record that neither the AO has conducted a proper inquiry to verify the correctness of the claim due to time constrain nor the CIT(A) has considered the confirmations filed by the assessee. Accordingly, in the facts and circumstances of the case this issue is set aside to the record of the AO for proper verification and fresh adjudication after giving an opportunity of hearing to the assessee as well as considering the confirmation filed by the Assessee. Disallowance of Coal Handling Expenses - excess claim on the part of the assessee when the net amount of coal is shown by the assessee in the books is considered and the differential amount is rightly added to the income of the assessee - HELD THAT:- As pointed out by the Ld. AR of the assessee, there is a difference in the gross amount of coal purchased by the assessee and coal handling charges are claimed to have been paid on the gross amount and not on the net amount. The AO computed the coal handling charges on the net quantity. However, this point was not raised by the assessee either before the AO or before the CIT(A). Therefore, these facts of gross amount and net amount of coal purchase during the year under consideration were unverified at the level of AO as well as CIT(A) - this issue is set aside to the record of the AO for reconsideration the same after giving an appropriate opportunity of hearing to the assessee. Appeal of the assessee is allowed for statistical purposes.
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