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2018 (2) TMI 1525 - AT - Income TaxDisallowing the claim of “advance written off as shown under head “sundry debts written off’ - Held that:- The assessee-company has initially stated that the amount in question represented debts have become bad during the year and were written off in the books of account. However, it was clarified before DRP that it was a wrong submission made by the assessee-company because the amount in fact a debit balance was appearing in the accounts of the Vendors which were written off as were not recoverable. The assessee-company claimed that it is a business loss. The assessee-company, however, has not provided any basic details as to when the amount in question was advanced and to whom and for what purpose and what steps have been taken by the assessee-company for recovery of these amounts. Since the assessee-company failed to substantiate the issue of incurring of losses in the ordinary course of business before the authorities below and no further evidence or details have been furnished before Tribunal as well, we are of the view that assessee-company has failed to prove if any actual business losses have been suffered by assessee-company. Stock written-off - Held that:- The assessee-company did not file any evidence in support of its claim except filing copy of the ledger account. Assessee-company did not submit any report of Engineer or Production Head to verify that actually the inventory has become obsolete. Mere filing of the ledger account is not sufficient to support the claim of the assessee-company that the stock has become obsolete. Merely referring to Accounting Standard would not support the claim of the assessee-company that in fact the stock of the assessee-company has become obsolete. In the absence of any evidence in support of the claim of the assessee-company, no interference is called for in the matter. The DRP has given one more chance to the assessee-company to get the claim verified before A.O. However, the assessee-company did not avail the opportunity and did not produce any relevant or cogent evidence before A.O. to substantiate the claim of obsolete stock. Excess depreciation claim on fixed assets acquired by the appellant from NCR Corporation India Private Limited - Held that:- Direct the A.O. to verify the claim of the assessee-company as per law and pass consequential order.
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