TaxTMI 
TaxTMI 
TaxTMI 
2015 (8) TMI 1213
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....ions of law: - 1) Whether, on the facts and in circumstances of the case the ITAT are justified in allowing the insurance claim written off by the assesse, even though it related to an earlier year and not the assessment year in question as also since the claim was related to the loss of a capital asset? 2) Whether, on the facts and in circumstances of the case the ITAT are justified in upholding the order of the CIT(A) in restricting the additions made u/s 40A(3) of the Income Tax Act, 1961 to 20% of the cash purchases in excess of Rs. 10,000/-, by taking recourse to a prospective amendment made in Section 40A(3) of the IT Act, 1916 w.e.f. 01/04/1996?" 3) Counsel for the appellant submitted that the respondentassessee had declared tot....
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....assessee as well as the appellant preferred appeals before the Income Tax Appellate Tribunal, Circuit Bench, Ranchi, Camp at Jamshedpur. Assessee's Income Tax Appeal No. is 355/Pat/96 which was pertaining to insurance claim which was written off by the assessee in the assessment year 1993-94. Department's appeal is bearing No.ITA/393/Pat/96 mainly for the reason that the Commissioner (Appeals) allowed against the restriction put by the Commissioner (Appeals) upto 20% of the total cash transactions. ITAT vide order dated 14th December, 2005 dismissed the appeal preferred by the appellant and allowed the appeal preferred by the assessee. Counsel for the appellant submitted that the socalled theft was committed at the premises of the a....
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....les, 1962 can also be given to the assessee. These aspects of the matter have not been properly appreciated by the Commissioner (Appeals), nor by the ITAT. Hence, the aforesaid substantial questions of law have been raised by the appellant. 4) Counsel for the assessee submitted that because of the theft committed at the premises of assessee, insurance claim was made which was not granted by the insurance company and ultimately, the said amount of Rs. 1,17,775/- was written off in the assessment year 1993-94. Once, the factum of theft is proved, the disallowance of insurance claim written off by the A.O. has been rightly quashed and set aside by the ITAT. So far as cash transactions are concerned, it is submitted by the counsel for the asse....
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.... appears that theft was committed on 10th of September, 1989. Insurance was claimed by the assessee which was rejected by the insurance company in the next year mainly for the reason that there was no theft of plant and machinery or the raw materials. This amount was written off in the year 1993-94. Thus, in the assessment year 1993-94 no theft was committed, but, it was in the year 1989 and, therefore, rightly A.O. as well as the Commissioner (Appeals) have dis-allowed the insurance claim written off. ITAT has failed to appreciate that the theft was committed in the year 1989, whereas, the claim was written off in the assessment year 1993-94, despite the claim was rejected by the insurance company in the very next year of the theft and, th....
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....DD. Assessee has failed to prove the existence of any of the circumstances or conditions, referred to by Rule 6DD. Hence, cash transaction as narrated by the A.O. in his order dated 26th of September, 1995 were in violation of Section 40A(3) of the Income Tax Act, 1961 and, hence, this amount of Rs. 14,58,354/- is to be added in the income of the assessee. 8) Counsel for the respondent has relied upon a decision rendered by the Hon'ble High Court of Delhi in the case of Basu Distributor Pvt Ltd. Vs. Asst. Commissioner of Income Tax reported in [2012] 206 TAXMAN 45 (Delhi). 9) Looking to the aforesaid decision, it appears that very few were the cash transactions, whereas, in the facts of the present case, as stated herein above, on 175....