Tribunal reverses decision on en route expenses and sale of old trucks, favoring assessee.

The Tribunal allowed the assessee's appeal on both issues. Regarding the disallowance of en route expenses, the Tribunal overturned the decision, emphasizing the consistency of expense claims and lack of defects in the submissions. On the addition for the sale of old trucks, the Tribunal disagreed with the lower authorities, stating the sale price was correctly reduced from the Written Down Value and the treatment as business income was incorrect per the Income Tax Act. Consequently, the Tribunal reversed the decision, allowing the appeal on this ground.

---

---

Issues:
1. Disallowance of en route expenses
2. Addition on account of sale of scraped/old and discarded trucks

Issue 1: Disallowance of en route expenses
The appeal arose from the Commissioner of Income Tax (Appeals)'s order sustaining the disallowance of Rs. 2.50 lakh against the assessee's claim of Rs. 95,74,607 for en route expenses. The Assessing Officer disallowed a portion of the claimed expenses due to lack of proper bills and vouchers, resulting in an addition of Rs. 4,78,730 to the total income. The CIT(A) partly confirmed the disallowance, limiting it to Rs. 2,50,000. The Tribunal reversed the decision, noting the consistency of the expenses being claimed over the years without prior disallowance. The Tribunal emphasized the lack of defects or deficiencies in the assessee's submissions and allowed the appeal on this ground.

Issue 2: Addition on account of sale of scraped/old and discarded trucks
The second ground of appeal related to the addition of Rs. 10.50 lakh for the sale of 30 trucks at Rs. 15,000 each, where the Assessing Officer estimated the price per truck at Rs. 50,000 due to lack of buyer details and certain trucks showing nil or Rs. 1 in the books. The CIT(A) upheld the addition, stating that all old trucks with registration numbers should be sold as scrap with proper documentation. The Tribunal disagreed with the lower authorities, noting that the sale price was correctly reduced from the Written Down Value (WDV) of the assets. The Tribunal found the treatment of the sale price difference as business income incorrect, as per the Income Tax Act provisions. Consequently, the Tribunal reversed the decision, allowing the appeal on this ground.

In conclusion, the Tribunal allowed the assessee's appeal on both issues, emphasizing the consistency of expense claims and the correct treatment of sale proceeds from the trucks.

---