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2015 (2) TMI 585 - ITAT DELHIProvision of storage and handling charges - CIT(A) deleted the addition and the adjustment of book profit on account of addition of provision for storage and handling charges - Held that:- From the nature of details of provisions and the evidence of having made payments of the same in subsequent year clearly establish that the provisions were ascertained liability and therefore, Ld. CIT(A) has rightly deleted the disallowance. We find that the details were submitted to Ld. CIT(A) as an additional evidence and these were duly forwarded to A.O. From the remand report, it is found that despite given the opportunity, the A.O. has not made any comment on the additional evidences but maintained that the provisions for reimbursement of transportation and telephone expenses etc. were not allowable under the law. However, we find that these provisions were ascertained liabilities for which assessee had filed complete details and order of Ld. CIT(A) is exhaustive and we do not find any infirmity in the same. - Decided against revenue. Write off of inventory - CIT(A) deleted the addition - Held that:- The Ld. A.R. though invited our attention to minutes of Board Meeting and details of inventory loss but did not bring to our notice as to how sum of total loss written off during this year and how only this amount was determined to be written off during this year, was arrived at. On the one hand, Ld. A.R. argued that total loss on account of reconciliation was about ₹ 2 crores out of which ₹ 1.51 crores was written off in the year under consideration and ₹ 49 lacs was written off in the succeeding year but the facts noted in the P & L account reveal that in earlier year also, a similar loss was written off to the extent of ₹ 2.13 crores. Therefore, the matter needs to be readjudicated by Ld. CIT(A) who on the basis of total amount of loss determined on account of reconciliation will determine the actual amount of total inventory loss to be written off in the year under consideration. The Ld. CIT(A) will also examine as to when settlement took place between the parties and when the loss was determined and was required to be written off. - Decided in favour of revenue for statistical purposes.
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