2003 (7) TMI 282

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....s of s. 140A. 2. In deleting the addition of Rs. 8,87,664 on account of damaged stock written off by accepting the assessee's contention that the AO had not asked for the relevant details to be filed at any stage during the course of assessment proceedings despite the fact that the AO had specifically called for such details as is evident from the order-sheet entries, dt. 10th Feb., 1997, 21st March, 1997, 25th March, 1997, 7th April, 1997 and 16th July, 1997. 3. In directing to allow deduction under ss. 80HH and 80-I on the interest income of Rs. 84,000 despite the fact that such income is not directly derived from the industrial activities carried on by the assessee." ITA No. 4366/Del/1998 "On the facts in the circumstances of....

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....ding to the assessee, the said written off values were reflected in the books of account and ultimately taken to the P&L a/c which was produced by them at the time of assessment before the AO. The assessee contended that at no point of time the AO ever called for any explanation. It was in this background suggested that AO was not (justified in) making an addition on account of the damaged stock written off. 4. Being aggrieved by the order of the AO, the assessee filed an appeal before the CIT(A) which appeal of the assessee was allowed by the CIT(A) with the following observations: "Before me, the learned Authorised Representative has protested against this addition and has stated that at no stage during the course of the assessment ....

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....ge which was to the tune of 1.75 per cent, it was insignificant. The record also reflects that the photocopies of journal entries along with supporting proof of all the materials returned were furnished before the CIT(A) which is co-terminus with the documents submitted before the AO. In view of these facts we find no infirmity in the order of the CIT(A) and have, therefore, no hesitation in rejecting ground No. 2 of the appeal. 7. This brings us to ground No. 3 filed by the Revenue where the challenge is to the order of the CIT(A) in holding that the interest income has been directly derived from the industrial activities carried on by the assessee. The relevant facts available on the record as far as this issue is concerned is that the....