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TMI Blog2019 (3) TMI 2068X X X X Extracts X X X X X X X X Extracts X X X X ..... turing and trading including export of rice and plastic products. For the Asstt. Year 2010-11, they have filed their return on 15.10.2010 declaring an income of Rs. 1,80,11,900/-. Learned AO, however by order dated 30.3.2013 u/s. 143(3) of the Income-tax Act, 1961 ("the Act") assessed the income of the assessee at Rs. 14,35,36,000/- by making additions including Rs. 4,18,26,767/- on account of loss in the plastic division, Rs. 7,6,12,000/- on account of trade discount, Rs. 60,85,338/- on account of shortage of closing stock and Rs. 30 lacs on account of shipping expenses. 3. Aggrieved by the said additions, assessee preferred an appeal before the ld. CIT(A). Learned CIT(A) by way of impugned order deleted the additions of Rs. 4,18,26,767/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al sales were Rs. 50.02 crores against the expenditure of Rs. 49.82 crores resulting in profit of Rs. 19,50,399/-. 6. Assessee, in support of their contention, produced copies of the Excise Registration in respect of the Bangalore and Chennai branches, Excise return of plastic division of Chennai branch and copies of assessment under VAT. Impugned order speaks and for that matter, there is no dispute that learned CIT(A) sought remand report from the ld. AO. Learned AO commented that the electricity bill of Bangalore unit was of small amount and the bills are not in the name of the assessee. Except this, there was no serious dispute about the documentary evidence produced by the assessee. 7. Record further speaks that after preferring the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted by the ld. AO is rectified by the learned CIT(A) by looking into the record and on that aspect the Revenue should not have any grievance. This ground of appeal is devoid of merit and is accordingly dismissed. 9. Ground No. 2 of revenue's appeal is in respect of the addition on account of trade discount allowed to the customers. In so far as this amount is concerned, there is no dispute that an amount of Rs. 7,46,12,000/- had become irrecoverable. According to the assessee, they treated as trade discount whereas according to the learned AO, it should be the bad debt allowable in the next year inasmuch as the agreement giving rise to the deficit in recovery had arisen on account of the agreement dated 20.4.2010. The genuineness of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir associate concern M/s. Pearl Beach General Trading LLC of "MOHSEN" brand rice. Such a factual finding is not disputed in this appeal and in view of the fact that transaction took place in this year to crystallize after the date of balance sheet or before the settlement of accounts, the assessee rightly claimed the deduction of this amount in this year and it cannot be denied. We are in agreement with the submissions made on behalf of the assessee. On this premise, we do not find any reason to interfere with the findings of the learned CIT(A) and accordingly, dismiss this ground. 13. Now coming to the last ground relating to the shortage of stock, Learned CIT(A) recorded that the shortage of 1447.17 qtls. works out to 0.0032% of sales ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact with reference to the disallowance furnished by the assessee, it would be in the fitness of the things to remand the matter to the learned AO for verification of the same and to take a view. Learned DR does not dispute the verifiability of the expense. 16. In these circumstances, in respect of the fact as to whether or not a receipt is issued and whether the payment was made by the assessee as claimed by them, needs verification and such a verification could conveniently be done at the end of the AO. We, therefore, set aside this issue to the file of the AO for verification and to take a view. This ground of assessee's appeal is allowed for statistical purposes. 17. In the result, whereas appeal of the revenue is dismissed, asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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