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2016 (8) TMI 455 - ITAT AHMEDABAD

2016 (8) TMI 455 - ITAT AHMEDABAD - TMI - Loss on account of Fire - claim of quantum of loss - Held that:- The undisputed fact is that the assessee was having both excisable and non-excisable goods. It is also not in dispute that both categories of goods were gutted in fire. We find that the A.O. was carried away with the quantification of loss by the Excise Department and completely ignored the loss of nonexcisable goods. Since, there was no bifurcation of goods, excisable and non-excisable. Th .....

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- Madras High Court) squarely apply on the facts of the case. - Employees’ Contribution to Provident Fund, ESI - A.O. added the amount so paid/deposited after the due date - Held that:- This issue has to be decided in favour of the Revenue and against the assessee in the light of the decision of the Hon’ble Jurisdictional High Court given in the case of Gujarat State Road Transport Corporation [2014 (1) TMI 502 - GUJARAT HIGH COURT ] - Decided in favour of revenue. - Addition u/s 41 - c .....

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f the Act, the ld.CIT(A) has rightly deleted the impugned addition which requires no interference. - Decided in favour of assessee. - ITA. No: 2018/AHD/2013 - Dated:- 20-6-2016 - SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER For The Appellant : Shri Prasoon Kabra, Sr. D.R. For The Respondent : Shri R.T. Shah, A.R. PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. With this appeal, the revenue has challenged the correctness of the order of the Ld. CIT(A)-XIV, Ahmedabad dated .....

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eals)-XIV, Ahmedabad has erred in law and on facts in deleting the disallowance of ₹ 70,29,821/- made u/s. 80IA of the Act. 3. The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts in deleting the addition of ₹ 2,05,491/- made on account of late payment of employees contribution to PF/ESI. 4. The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts in deleting the addition of ₹ 41,343/- made on account of sund .....

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ring the course of the scrutiny assessment proceedings and on perusal of the Profit and Loss account, the A.O noticed that the assessee has debited an amount of ₹ 39,81,000/- on account of loss of material on fire. The assessee was asked to justify the claim of loss on account of fire. The assessee filed a detailed reply which read as under:- "3) With regard to loss on account of fire on 11 09 2009 in Company's Factory premises at Rakanpur, resulted into partial destruction of sto .....

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t of claim with the insurance company. As desired by your good self, we enclose herewith the following. (Page No. 1 to 14) a) Fire Report b) Police Report c) Forensic Laboratory Report d) News Paper cutting of Divya Bhaskar dated 10.11.2009." 5. The A.O. found the aforementioned reply not complete. The A.O. was of the opinion that the assessee has not furnished any evidence to justify the claim of quantum of loss on account of fire. 6. The assessee was further asked to explain, assessee fil .....

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oss on account of fire was ₹ 4621744+3682581=Rs.83043251-. Against the total loss of ₹ 8304325/- the amount received from the insurance company is ₹ 5289000/-. Insurance claim received shown as income ₹ 5289000/- in A.Y.2011-12. We enclose herewith subsequent year audited account in support of the income shown.(Page No.2 to 20)" 7. After perusing the aforementioned replies of the assessee, the A.O. was of the opinion that the quantum of loss on account of fire is wid .....

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ise Department has quantified the loss only in respect of excisable goods whereas there were non-excisable goods also which have been gutted in the fire. The ld. CIT(A) was convinced with this claim of the assessee but at the same time allowed 50% of the claim on account of loss of nonexcisable goods due to fire and confirmed the additions in respect of balance 50% of the disallowed amount. 11. Aggrieved by this, the revenue is before us. 12. The ld. D.R. cold not point out any factual error in .....

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d away with the quantification of loss by the Excise Department and completely ignored the loss of nonexcisable goods. Since, there was no bifurcation of goods, excisable and non-excisable. The ld. CIT(A) restricted the disallowance to 50%. In our considered opinion, the allowance of 50% of the claim on account of loss of non-excisable goods should meet the ends of justice. We, therefore, decline to interfere, ground no. 1 is accordingly allowed. 14. While scrutinizing the return of income, the .....

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Madras High Court (supra). The ld. CIT(A) observed that this issue had first come up in A.Y. 2009-10 where the claim was allowed. Following the precedence, the ld. CIT(A) allowed the claim of deduction. 16. Before us, the ld. D.R. could not bring any distinguishing decision in favour of the revenue. Ld. counsel for the assessee relied upon the findings of the ld. CIT(A). 17. We have carefully considered the orders of the authorities below. An identical issue was decided by us in favour of the a .....

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re the due date. The A.O. accordingly added the amount so paid/deposited after the due date and made an addition of ₹ 2,05,491/-. 19. Before the First Appellate Authority, the assessee strongly relied upon the decision of the Hon ble Supreme Court in the case of Alom Extrusions Ltd. 319 ITR 306. The ld. CIT(A) accordingly directed the A.O. to delete the impugned disallowance. 20. Aggrieved by this, the revenue is before us. 21. We have heard the rival submissions and after carefully perusi .....

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