9911796707
TMI Blog2022 (6) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... )-4, Kolkata erred in deleting the addition made by the AO regarding provision for impairment loss of Rs. 7,77,70,000/- without appreciating the findings brought on record by the AO. 2. That on the facts and circumstances of the case, the Ld. CIT(A)-4, Kolkata erred in deleting the addition made by the AO regarding sundry balance written off amounting to Rs. 8,56,692/-. 3. That the appellant craves to add, delete or modify any of the grounds of appeal before or at the time of hearing. 3. The issue raised in ground no. 1 is against the deletion of addition by the Ld. CIT(A) as made by the AO on account of provision for impairment of loss of Rs. 7,77,70,000/-. 4. The facts in brief are that during the assessment proceedings, the AO n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing the rival parties and perusing the material on record, we find that the deletion of addition by ld CIT(A) on account of loss resulting from impairment of fixed assets based on the valuation done by Government Registered approved Valuer is not in consonance with the provisions of the Act. The ld Counsel of the assessee referred to the provisions of section 41(2) of the Income Tax Act, 1961 (hereinafter referred to as the Act) when he was queried that under what provisions of the Act the loss on impairment in the value of fixed assets was claimed. We have perused the provisions of section 41(2) of the Act carefully and in our view the section deals with the loss arising from building, machinery, plant or furniture which are owned by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. The issue raised in ground no. 2 is against the deletion of addition by the Ld. CIT(A) of Rs. 84,56,692/- as made by the AO on account sundry balance written off. 7. Facts in brief are that during the assessment proceedings, the AO noted that the assessee has written off Rs. 84,56,692/- under the head sundry balances and charged the same to the profit and loss account. Accordingly, the assessee was called upon to file the details of such claim as debited by the assessee. The assessee replied to the AO vide written submission dated 20.03.2014 submitting that the claim comprised of sundry balances wriiten off as well as stocks written off however wrongly claimed under the head sundry balances written off. The AO observed from the detail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be allowed to the assessee. We note that the claim has rightly been allowed by ld CIT(A) by appreciating the facts after going through the details filed by the assessee. Having considered these facts we have no iota of doubt in our mind that even the stocks written off which are rendered unserviceable represented a business loss and has to be allowed while computing the income of the assessee though the assessee has made the claim under the head sundry balance written off. In our considered view the mistake of the assessee would not disentitle it from a lawful expenditure. Accordingly, we upheld the order of Ld. CIT(A) by dismissing the grounds raised by the revenue. 9. In the result, the appeal of the revenue is partly allowed. Order is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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