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TMI Blog2024 (9) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) arbitrary disallowed such loss by Rs.1,18,17,398/- on misinterpretation on news items printed in newspaper, the AO may kindly be directed to allow the loss due to robbery as per the books of account. 3. Your Honour's assessee craves leave to add, amend, alter or withdraw any or more grounds of appeal on or before the hearing of appeal. 3. Brief facts of the issue in dispute are stated as under. The assessee derives income from business during the year under consideration. The assessee, filed return of income, declaring a loss of Rs. 1,62,96,800/-, on 30.09.2015. Later on, the assessee sou-moto filed the revised return of income along with computation of income on 04.10.2016, declaring a loss of Rs. 1,60,50,232/-. The case of the assessee, was selected for complete scrutiny through CASS, hence a notice u/s 143(2) of the Act, was issued to the assessee, on 26.07.2016, which was duly served upon the assessee. The notice u/s 142(1) cum- questionnaire was issued to the assessee. In compliance thereto, the assessee, appeared and filed written submissions and documents before the assessing officer. On perusal of details filed by the assessee, on 10.11.2017, it was observed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed by the assessing officer. 5. Aggrieved by the order of the assessing officer (AO), the assessee carried the matter in appeal, before the Ld. CIT(A), who has partly allowed the appeal of the assessee. The learned CIT (A) noticed that assessee was definitely hopeful of recovery of stolen goods. The ld CIT(A) also noted that period from 17.02.2014, when robbery happened to date of filing return could not be held to be an excessive period to make efforts to recover the money and consequently the consciousness of the loss should be attributed to the assessee, only after 1-4-2014. Therefore, ld. CIT(A) held that the assessee is eligible for deduction in the Assessment year 2015-16, even though the loss happened on 17.02.2014 (pertaining to assessment year 2014-15). Hence, the ld. CITA(A) allowed the loss by way of robbery, to the tune of Rs. 75,00,000/-, for the assessment year under consideration, out of the total loss incurred by the assessee amounting Rs. 1,93,17,398/-. 6. Since, the ld CIT(A) allowed the part loss to the tune of Rs.75,00,000/-, therefore, the assessee is in appeal before us for balance loss of Rs.1,18,17,398/- (Rs. 1,93,17,398- Rs. 75,00,000). 7. Shri Mehul R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing documents and evidences to prove its claim of loss by robbery, which are reproduced as under: Sr. No. Particulars Paper book Page no. i. Copy of FIR and news paper cuttings 12 to 18 ii. Copy of investigation Report of Rajkot Police Station 19 to 23 iii. Copy of trading account & balances sheet for the AY 2014-15 24 & 25 iv. Copy of letter dated 22.05.2015 by Police inspector, "A" Division Police Station, Rajkot to Judicial Magistrate, Rajkot 26 & 27 v. Copy of summons dated 07.07.2018 to witness Shri Dinesh bhai Mansukh bhai Pau 28 As per the above evidences, we note that on 17.02.2014, at around 7.30 a.m. a robbery of Gold stock of Rs. 1,93,17,398/-, while bringing the stock from home by partner Amit bhai Kaushikbhai Adesara, on the way to the shop, on the vehicle Activa was happened. Immediately the assessee filed FIR on the same day at 8.30 a.m. at registered No. 53/14, under the IPC and other Acts at 'A' Division Police Station Rajkot. Copy of the FIR and news- paper cutting are filed by the assessee before the Bench, vide paper book Page no. 2 to 18. The investigation by the Police Department was immediately started and as per report of PSI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... near future; hence the robbed stock was debited to the trading account. However, if any robbed gold/jewellery are found in future or get possession of seized gold ornaments weighing appx. 100 grams from the police department / court, the assessee would be liable to offer to tax in the year of possession. We also note that the Police Department has not treated the assessee's case as closed and the latest summon was issued to Shri Dinesh bhai Mansukh bhai Pau, a witness on 07.07.2018 to remain present on 26.07.2018, the Copy of the same is filed vide paper book Page No. 28. In view of the above facts, the assessee debited the robbed gold/jewellery in the assessment year under consideration. We find that assessing officer disallowed the claim of the assessee just because it was not debited to the trading account, in the year of event, though it appears in the balance sheet for the year 2014-15, under the head 'Gold Robbery'. The robbery loss was not debited to the trading account in the year ended 31.03.2014, as at initial stage the robbers / conspirators were apprehended and there was hope for recovery. Subsequently, the assessee lost his hope, therefore debited the loss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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