TaxTMI 
TaxTMI 
2013 (11) TMI 265
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....itten off by the appellant to the extent of Rs. 96,04,920/- 2. Ld CIT (A) erred in holding that in the absence of any evidence to prove that the loss in respect of stock written off has arisen during the relevant previous year, the AO was justified in not allowing such loss as business loss. 3. Ld CIT (A) erred in upholding the action of the AO in not allowing the claim of write off of stock in respect of Vipul Securities on the basis that as fake certificates were delivered in an earlier year, the loss cannot be considered a crystallized during the year. 4. Without prejudice to the above, the AO may be directed to allow the write off of stock in the year in which it has been crystallized." 3. At the outset, Ld Counsel filed cop....
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....see has claimed as business loss incidental to business, it has failed to bring on record the evidence to substantiate that loss had specifically arisen during the year. In order to allow the assessee‟s claim of loss on account of incidental to business, the onus lies on the assessee to prove that the loss has arisen during the year. It is seen that the following instances, the loss incurred or crystallized during the previous year under consideration. Therefore, the claim of write off of stock as business loss is not acceptable. In view of this, the assessee‟s claim of writing off Rs. 96,54,799/- is not being admitted and the same is disallowed." 4.1. Aggrieved, assessee carried the matter in appeal before the CIT(A). 5. ....
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....he order of the AO. 8. We have heard both the parties and perused orders of the Revenue Authorities as well as the cited orders of the Tribunal in general and para 9 of the Tribunal‟s order for the AYs 1999-2000 and 2000-2001 and the same reads as follows. "9. We also observe that assessee has also in the Annexure to above letter (es) had given details of shares and the amount written off against each script. On perusal of the same, we are of the considered view that the contention of Ld DR that assessee could not file the details before the AO as to how the loss was estimated for both assessment years under consideration has no merit. We observe that assessee has made the analysis of the situation and only after arriving to the....
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...., the assessee has been making provision for such loss @ 0.01% of turnover. The provision so made is added in the computation of income and actual claim of loss is made after due verification. This year assessee claimed loss of Rs. 4,84,796/- which was disallowed by the AO. We find that similar disallowance had been made by the AO in the assessment year 1999-2000 which had been deleted by CIT (A). In further appeal, the Tribunal after necessary examination concluded that the assessee had been regularly making analysis of the bad stock and only after arriving at the conclusion that the stock had become worthless / unsalable, the business decision was taken to write off the stock. The Tribunal also observed that there was no dispute that t....