https://www.taxtmi.com/caselaws?id=351722 Reimbursement paid for short supply in a high seas sale was treated as an allowable business loss because the import and onward sale were supported by purchase records, settlement documents, debit notes and banking evidence, and the addition rested only on suspicion and nomenclature objections without proof of falsity. The Tribunal held that accounting treatment did not convert the claim into a sales return where no goods were received back, and commercial judgment could not be substituted absent contrary evidence. It also held that disallowance under section 14A cannot exceed the exempt dividend income, so the rule 8D disallowance was restricted to the amount of exempt income. en-us Mon, 27 Nov 2017 00:00:00 +0530 Thu, 30 Nov 2017 08:43:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=351722 Reimbursement paid for short supply in a high seas sale was treated as an allowable business loss because the import and onward sale were supported by purchase records, settlement documents, debit notes and banking evidence, and the addition rested only on suspicion and nomenclature objections without proof of falsity. The Tribunal held that accounting treatment did not convert the claim into a sales return where no goods were received back, and commercial judgment could not be substituted absent contrary evidence. It also held that disallowance under section 14A cannot exceed the exempt dividend income, so the rule 8D disallowance was restricted to the amount of exempt income. Case-Laws Income Tax Mon, 27 Nov 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=351722