Transport expense deduction allowed where records supported a reasonable apportionment and no contrary material disproved the claim.

Appeals on the common issue were dismissed because the controversy was already covered against the assessee by prior Tribunal decisions. On the transport-expense issue, deduction was allowed because the assessee substantiated the claim with records showing vehicles, fuel, salaries, movement of goods and a reasonable 60% apportionment for depot-to-customer transport; the revenue produced no contrary material to show the allocation was arbitrary. The related disallowance, duty demands and penalties could not be sustained.

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Issues: (i) Whether the appeals covered by the earlier decisions relied on by both sides were liable to be dismissed. (ii) Whether the assessee was entitled to deduction of transport expenses incurred for transporting goods from the depot to the buyers' premises.

Issue (i): Whether the appeals covered by the earlier decisions relied on by both sides were liable to be dismissed.

Conclusion: The appeals on the common issue were dismissed as the controversy stood covered against the assessee by prior Tribunal decisions.

Issue (ii): Whether the assessee was entitled to deduction of transport expenses incurred for transporting goods from the depot to the buyers' premises.

Analysis: The claim was supported by the Chartered Accountant's statement and the records regarding period, vehicles, fuel, salaries and movement of goods. The allocation of 60% of transport expenditure to depot-to-customer movement was based on those records and was not shown to be arbitrary or unsupported by contrary material.

Conclusion: The deduction was allowable and the disallowance, along with the connected duty demands and penalties, could not be sustained.

Final Conclusion: The decision resulted in dismissal of the appeals covered by precedent and allowance of the remaining appeals in favour of the assessee.

Ratio Decidendi: A deduction for transport expenditure is allowable where the assessee substantiates the claim with records showing a reasonable apportionment of actual expenditure and the revenue does not produce material to disprove it.

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