TaxTMI 
TaxTMI 
2014 (1) TMI 1705
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....he "CIT(A)" on a due consideration of the facts that (i) the "appellant" stood assessed, with the processing of "return" (filed on 30.10.2004) on issuance of intimation to that effect on 24.03.2005; and (ii) the notice issued under section 143(2) (as has been referred to in the assessment order itself) issued thereafter was wholly deficient in meeting the requirement of clause (ii) of sub-section (2) of section 143 read with proviso thereto; should have held that "variation" between the "returned income" and the "assessed income'' as has been impugned before him in the appeal filed on 24.1.2007 were wholly unauthorized and accordingly the same should have quashed in-toto." 3. At the time of hearing, it was submitted by learned A.R.....
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....age 9) of the appellate order. 5. Regarding the first issue i.e. addition made by the Assessing Officer of Rs. 91,164/- in respect of loss on account of damages to factory building/shed due to hailstorm, it was submitted by learned A.R. of the assessee that this issue is connected with the only issued raised by the Revenue. He submitted that in financial year 2002-03, there was severe loss incurred by the assessee on account of hailstorm and insurance claim was made for Rs. 2,56,18,847/-. He further submitted that the entire amount claimed was debited by the assessee to claim receivable amount and credited to other income in the same year. He further submitted that against the said claim receivable in the present year, the assessee receiv....
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.... when the entire amount of claim made by the assessee was shown by the assessee as income in the year of claim, loss arising due to short realization in the present year after finalization of the claim has to be allowed as business loss and the same is not dependent on this as to whether the claim is in respect of building or in respect of stock. The claim in the present year is on this basis that the income accounted for in earlier year i.e. A. Y.2003-04 is not realized and, therefore, written off in the present year and hence, the same is allowable in the present year. Therefore, the issue raised by the Revenue in its appeal is rejected and ground No. 2 of the assessee is allowed. 7.1 Regarding the three other issues raised by the assess....
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....ore items urgently required for maintenance jobs or payment of wages to the casual labours employed for stores and maintenance jobs, all major items under different heads are supported by external bills and vouchers and the same are amenable to full verification. A copy of Annexure-4 is available on page 23 of the paper book. From the same, we find that out of total payment of Rs. 171.67 lac, the payment made in cash is of Rs. 35,17,632.40. Hence, it is admitted position that cash payment of this magnitude is not verifiable even as per the submissions before the learned CIT(A). The disallowance made by the Assessing Officer is of Rs. 10 lacs and out of the same, learned CIT(A) has confirmed the addition of Rs. 7 lac. Hence, the disallowanc....
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.... and the remaining amount was paid in cash. When such a huge amount is incurred in cash, which is not verifiable, the disallowance of a sum of Rs. 2 lacs is not excessive and this is not an ad hoc disallowance without any basis but estimated disallowance out of huge cash expenditure on the basis that such cash expenditure is not verifiable. Therefore, this disallowance of Rs. 2 lac is also confirmed. 9.2 The fourth item is regarding disallowance of Rs. 6 lacs out of misc. expenses claimed by the assessee at Rs. 99,38,909/-. Originally the disallowance was made by the Assessing Officer to the extent of 10%, which was restricted by learned CIT(A) to Rs. 6 lacs. The details of these expenses are available on page 25 of the paper book,....