TaxTMI 
TaxTMI 
2018 (5) TMI 1542
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....44,55,428/- made by the Assessing Officer, disallowing the assessee's claim of loss due to theft of goods. 3. I have heard the ld DR and perused the material available on the record and found that the loss claimed by the assessee on account of theft, which was disallowed by the Assessing Officer, had been deleted by the ld. CIT(A) after having following observation: "4.2 I have considered the facts of the case, assessment order, appellant's written submission and various evidences furnished by the appellant in support of claim of loss due to theft. I find that the AO disallowed the assessee's claim of loss of Rs. 44,55,428/- on following counts:- i. that the assessee did not maintain stock register and in that situation....
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....n the Hon'ble Gujarat High Court held that: "...it was an admitted position that the embezzlement had taken place during the relevant previous year and the same was duly reflected in the books of account by omission of the value of such goods from Ore sales as well as closing stock of the assessee in preparation of the final accounts. In a situation like this, so far as loss was concerned, detection was not relevant. The loss caused to the assessee by embezzlement during the relevant previous year was allowable as deduction in the computation of the income in that previous year itself. (P. 566, C, D)" Once the AO has accented the valuation of closing stock and did not find out any discrepancies therein then there is no....
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....the theft was admitted by the Insurance company, I find that mere rejection to admit claim by the insurance company cannot be the ground for rejection of claim of loss under the income-tax Act. There is agreement with the person and insurance company and this agreement has various conditions therein for considering and allowing the claim. However, the IT authorities are not bound by these terms and conditions. The assessee's claim can be examined in the light of various sections and sub-section of Income-tax Act, 1961 and if the same is found within the precincts of law, the claim of expenses/loss is allowable to an assessee. 4.6 As regards the AO's observation that the proceedings are still pending before the Court, hence fact of ....
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....ment, has not been recorded In the present case, the assessee produced its balance-sheets, audit report, copy of the first information report, copy of the letter dated 10th September, 1969, of the assessee along with its enclosure." 4.6.1. The Hon'ble ITAT Jaipur Bench in the Matter of M/s. Pawan Specialities (P) Ltd. Vs The ACIT (ITAT Jaipur) held as under:- I have heard the rived contentions and perused the materials available on record. It is noted from the records that the assessee had claimed loss of goods (i.e. Tata Sky Vouchers / Coupon of the supplier company) by theft However, in the assessment proceedings, the AO required the Justification in this regard or also to produce the copy of the FIR for the legal ac....
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....ould be allowed if the loss took place in the normal course of business and the amount involved was necessarily kept for the purpose of the business in the place from which it was lost. The Hon'ble Supreme Court has further considered the matter and laid down the law in this regard in the following two cases. (1) Badri Das Daga vs. CIT (1958] 34ITR 10 (SC): TC 14R.202. (2) Associated Banking Corporation of India Ltd vs. CIT (1965) 56 ITR 1 (SC) On the enquiry by the Bench, it was confirmed by the Id AR of the assessee that the turnover of the assessee company is more than Rs. 1.00 crore. It is further noted that such issue has been decided by the Hon'ble Courts in favour of the assessee. (4) Shitla Prasad ....