Case Law Details
P.H. Kumar & Co. Vs ITO (Delhi High Court)
Court is of the view that the plea of the Assessee ought to have been accepted in the first instance by the AO. The Assessee placed on record the agreement under which it was obliged to bear the loss for shortage of stock. The Assessee also placed on record the statement of account in terms of which it had to pay the company Rs.2 lakhs towards shortage of stock. It is not as if the Assessee did not make an effort to ascertain the details. It was informed that on account of fire, those details could not be provided as the records had been destroyed. This was not something in the control of the Assessee. On its part it gave the full details to the AO including the FIR number reporting the loss of records due to the fire.
The Court fails to appreciate how the Assessee could have done anything more to substantiate the fact that it had to pay Rs.2 lakhs to the company towards the shortage of stock. The fact of the Assessee having actually paid the company the said amount is also not in dispute. Therefore, the amount as claimed by assessee was to be allowed.
FULL TEXT OF THE HIGH COURT ORDER / JUDGEMENT
1. This is an appeal by the Assessee against the impugned order dated 22nd February, 2005 passed by the Income Tax Appellate Tribunal (ITAT) in ITA No. 1861/Del/2004 for the Assessment Year (AY) 2001-2002.
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