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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 ..... d available with the Registrar of Companies whereas the details of the plastic division were given in Schedule XVIII of the balance sheet. AO should have rectified the factual mistake committed by him in taking up the wrong figures of sales, namely, in the place of Rs. 50,02,37,179/-, he had taken Rs. 45,64,60,012/- and thereby arrive at a loss of Rs. 4,18,26,767/- instead of finding the profit of Rs. 19,50,401/-. The factual error committed by the 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. Addition on account of trade discount allowed to the customers - In so far as the relationship betw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this matter, the shortage recorded is only 0.0032% and by no stretch of imagination, could we say that this is unacceptable. We do not find any irregularity or illegality in the findings of the learned CIT(A). With this, appeal of the revenue stands dismissed. - N.K. BILLAIYA, MEMBER (A) AND K. NARASIMHA CHARY, MEMBER (J) For the Appellant : Ved Jain and Ashish, Advocates For the Respondent : Sushma Singh, CIT, DR ORDER K. NARASIMHA CHARY, MEMBER (J) 1. These are crossed appeals filed both by assessee and the Revenue challenging the order dated 31.3.2015 in Appeal No. 332/14-15 passed by the Learned Commissioner of Income-tax (Appeals)-2, New Delhi { CIT(A) } for Assessment Year 2010-11. 2. Brief facts of the case are that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned AO sought the explanation from the assessee stating that the assessee company incurred a loss of Rs. 4,18,26,767/- in the plastic division by showing the sales of Rs. 45,64,60,012/- as against the expenditure of Rs. 49,82,86,778/- and he based the said query on his observations that there was no plastic division of the assessee at all and even if it is there, such plastic division at Bangalore and Chennai are not holding excise and tax registration. 5. It was argued before the learned CIT(A) that prior to reaching to such conclusion as to the loss said to have been incurred by the assessee in the plastic division, learned AO did not give any show cause notice on this aspect. It was also further submitted before the ld. CIT(A) that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion the details about the plastic division as per the tax audit report filed by the assessee in From 3CD, the audited annual accounts which were duly certified by the CA and downloaded by them from the portal of the Ministry of Corporate Affairs which were prepared after conducting inspection of assessee's record available with the Registrar of Companies whereas the details of the plastic division were given in Schedule XVIII of the balance sheet. It is further clear that learned AO should have rectified the factual mistake committed by him in taking up the wrong figures of sales, namely, in the place of Rs. 50,02,37,179/-, he had taken Rs. 45,64,60,012/- and thereby arrive at a loss of Rs. 4,18,26,767/- instead of finding the profit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar because the expenditure happened in this year and in the event of the settlement agreement occurred though subsequent to the date of the balance sheet but before the settlement of accounts. Lastly, he submitted that even otherwise, in his book, the assessee written off this amount and it is not for the Revenue to question the wisdom of the assessee in writing off in this year and genuineness of the recoverability cannot be questioned. 12. In so far as the relationship between M/s. Mohsen Line General Trading, LLC and M/s. Pearl Beach General Trading LLC, learned CIT(A) found that in view of the letter dated 1.8.2009 whereby M/s. Mohsen Line General Trading, LLC had informed the assessee on two contracts dated 1.7.2009 in respect of suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his, appeal of the revenue stands dismissed. ITA No. 4689/Del/2015: 14. Now coming to the assessee's appeal, only point involved is the payment for shipping expenses. Record speaks that both the authorities below consistently recorded that assessee failed to produce any evidence whatsoever before them to support the payment recorded by the learned CIT(A) and pleads that in view of some dispute as to the quantum of shipping charges, the payee did not issue any receipt to the assessee so as to produce before the authorities. According to the assessee, only a part payment of Rs. 30 lacs was paid from time to time and since the payee did not issue receipts, they are unable to prove the same. 15. In these circumstances, it is prayed that sin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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