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TMI Blog2019 (8) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... ior Standing Counsel for the Revenue O R D E R 1. This is an appeal by the Assessee against the impugned order dated 22nd February, 2005 passed by the Income Tax Appellate Tribunal (ITAT) in ITA No. 1861/Del/2004 for the Assessment Year (AY) 2001-2002. 2. While admitting this appeal on 27 October, 2005, the following question of law was framed by this Court for consideration: "Whether disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of goods. 4. In November, 2000, the franchise agreement was cancelled and in the final account statement prepared by the company, a sum of Rs. 2 lakhs on account of stock shortage was debited and recovered from the assessee. In the return filed for AY 2001-2002, in computing the income, the Assessee claimed shortage of Rs. 2,22,080/- which included shortage of Rs. 2 lakhs debited by the compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he company had wrongly recovered the loss from the Assessee. The CIT (A) observed that the Assessee should have raised a dispute with the company instead of claiming it as a deduction. 7. The Assessee appealed then to the ITAT. While disagreeing with CIT (A) that the loss on account of shortage of stock was the liability of the company and not of the Assessee, the ITAT nevertheless upheld the dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve the full details to the AO including the FIR number reporting the loss of records due to the fire. 9. The Court fails to appreciate how the Assessee could have done anything more to substantiate the fact that it had to pay Rs. 2 lakhs to the company towards the shortage of stock. The fact of the Assessee having actually paid the company the said amount is also not in dispute. 10. Learned coun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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