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2018 (2) TMI 1359 - AT - Income TaxAllowance of unsubstantiated amount of commission - addition on account of non-confirmation from the parties - Held that:- All the necessary details were filed by assessee in the course of assessment proceedings as well as remand proceedings but no defect of whatsoever has been pointed out by AO. It was also pertinent to note that PAN of AEMS was available before AO but no verification was done with the AO having jurisdiction over AEMS - at the time of assessment proceedings a notice was issued u/s. 133(6) of the Act to AEMS for verification of commission expense but no response whatsoever received by the AO till the date of completion of assessment. Accordingly, the AO made the addition of commission expense paid to AEMS without confronting from assessee that no reply was received by him in response to the notice issued u/s 133(6) of the Act to AEMS. - Decided against revenue Addition on account of late delivery charges - necessary details were not furnished by assessee during assessment proceedings - Held that:- AO in remand proceedings has taken the stand that party-wise detail of late delivery charges was not filed by assessee, without point out any defect on the submissions filed by assessee before him. As the AO has not pointed out any defect in the submission made by the assessee at the time of assessment proceedings as well as remand proceedings, we feel that addition has been made by AO on his surmise and conjecture. Also assessee has furnished details of invoice against which late delivery charges was deducted and which are placed on pages 92 to 102 of the paper book. In this regard, Ld. DR before us has not pointed out any defect in the finding of Ld. CIT(A)- Decided against revenue Addition on account of capital loss - whether asset pertaining to the block of asset can be written off in the profit and loss account in the event it is lost? - Held that:- A block of asset can be reduced only in the event of sale, discarded demolished or destroy in the previous year. In the instant case, the deduction was claimed on account of loss of asset which is not appearing under the provision of Section 32(1)(iii). Therefore, no deduction on account of such loss of asset can be claimed by the assessee. Once an asset becomes part of block of asset then such block of asset can be reduced only in the event as provided under Act. There is no provision under the Act to reduce the block of asset in the event of loss of asset. Therefore, the deduction claim by assessee on account of loss of asset is not allowable under the scheme of Act. The assessee at the most can claim deduction in the form of depreciation on the asset lost by it @ specified under the Act. We direct the AO to disallow the claim of assessee on account of loss of asset but allow depreciation on the value of such asset @ Rate specified under the Act
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