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TMI Blog2023 (2) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... t reply to the notice issued u/s 133(6) by the AO. It is the contention of the assessee that since there was dispute between the assessee and its customer the customer did not respond to the said notice. Customer had not been making any payment for almost two years on dispute raised by the assessee for poor/inferior quality of goods supplied and the assessee company could realize its out-standing debt only on settlement of the claim of the customer for inferior quality of goods. Therefore, it is the contention of the assessee that since there was dispute the customer did not respond to the notice issued by the AO. In our view simply because the customer of the assessee did not respond to notice u/s 133(6) of the Act the mail sent by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount of rejection of goods in inferior quality by the customers. 2. Briefly stated the facts are that during the assessment proceedings from the annual report of the assessee the Assessing Officer noticed that assessee had shown loss due to rejection of goods. The assessee was required to explain along with the supporting regarding the said loss. The assessee submitted that the customers had rejected the goods on account of inferior quality and, therefore, the same was claimed as bad debt/business loss. Not convinced with the submissions the Assessing Officer disallowed the claim of the assessee. 3. On appeal the ld. CIT (Appeals) sustained the disallowance on the ground that the evidences furnished by the assessee in the form of le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s supplied inferior quality of goods and those goods were rejected by the debtor vide its email communication dated 15.04.2021 claiming a rebate of Rs.1,15,41,300/- (Copy of e-mail enclosed in the paper book at page No. 1 of the paper book). 4.3 Ld. Counsel submits that the assessee had submitted additional evidence during the course of appellate proceedings before Ld. CIT(A) which was admitted and additional evidences were sent to the Assessing Officer for his remand report. The ld. Counsel submitted that the assessee had submitted the below mentioned additional evidences before the CIT (Appeals). (i) Copy of journal voucher of the company dated 15.04.20 II for debiting in its books of account and allowing the write-off of the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is submitted that the customer had deducted the amount of Rs.1,15.41.300/- on account of his claim of poor/inferior quality of goods supplied in view of which there was no question of return back of goods. 5.2 Ld. Counsel further submitted that the appellant had submitted that the customer had not been making any payment for almost two year due to a dispute raised by it for poor/inferior quality of the good supplied and the assessee company could realize its outstanding debt only on settlement of the claim of the customer for inferior quality of good. The acceptance of the claim of the customer was on account of business exigency. The assessee had written off the amount of Rs.1,15,41,300/- in its books of account and debited the amount t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and the assessee company could realize its out-standing debt only on settlement of the claim of the customer for inferior quality of goods. Therefore, it is the contention of the assessee that since there was dispute the customer did not respond to the notice issued by the Assessing Officer. 9. In our view simply because the customer of the assessee did not respond to notice under section 133(6) of the Act the mail sent by the customer to the assessee rejecting the goods worth Rs.1,15,41,300/- supplied for poor quality cannot be ignored and disbelieved only for the reason that the party did not respond to the notice issued by the Assessing Officer. At the same time the ledger account show that the assessee had written off in its books ..... X X X X Extracts X X X X X X X X Extracts X X X X
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