2010 (11) TMI 501

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Common ground raised in these appeals reads as under:-   The Learned Commissioner of Income Tax (Appeals) has erred in allowing the deduction claimed as admissible by holding that the expenditure incurred on moisture cut is of commercial nature, when the expenditure on moisture cut is the liability of transport operators and there is no evidence to show that the transport operator have not deducted the expenditure in their accounts.   3. Facts necessary for adjudication are stated in brief - the assessee-firm is a transport contractor and had undertaken transportation of minerals from point to point, as required by M/s India Cements and M/s Madras Cements, on agreed consideration. In turn, the assessee-firm was hiring lorrie....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....deduction can be said to have been incurred wholly and exclusively for the purpose of business.   6. Ld. CIT(Appeals) accepted the contention of the assessee and in this regard observed, in the appellate order for the assessment year 1997-98, as under:-   "5. It can be seen, therefore, that in the case of India Cements, Chilamkur, amount as per TDS certificate is more by 2,431/- than net payable after moisture deduction of 2,71,657/-. In the case of India Cements, Dalavoi, amount as per TDS certificate is less by 74,592/- even though no moisture deduction is claimed. It is explained by Authorized Representative that there is some difference between bill value and amount as per TDS certificate on account of it being a running....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....owever, the said orders were set aside by the Hon'ble High Court of Judicature at Madras by observing that these cases fell within the exceptions provided in the circular of CBDT and therefore, the Commissioner was authorized to direct the A.O. to appeal before the Appellate Tribunal against the orders of the CIT(Appeals). Thus, these cases are listed. Accordingly, the appeals were taken up for hearing on merits.   9. Learned D.R. strongly relied upon the orders passed by the Assessing Officer and contended that the amounts mentioned in TDS certificates having been accepted by the assessee, it cannot claim deduction on the ground of moisture cut without furnishing any evidence to prove the same.   10. On the other hand, the ....