TaxTMI 
TaxTMI 
2012 (9) TMI 684
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....at the assessee is a proprietor of M/s. Golden Roadlines, engaged in transportation business. The assessee filed its return of income showing gross freight income received of Rs. 3,43,40,887, declaring net profit of Rs. 13,53,246. During the course of assessment proceedings, the Assessing Officer observed that the assessee has debited following expenses to Trading account and Profit & Loss account:- Transport Charges Rs. 1,63,61,545 Petrol, Diesel & Oil Rs. 66,08,754 Tyre replacement Rs. 14,58,660 Vehicle repair & maintenance Rs. 21,98,958 Wages Rs. 23,84,320 Conveyance Rs. 1,19,216 Salaries Rs. 9,38,235 Postage & Telephone Rs. 1,28,691 Office Maintenance Rs. 49,560 Total: Rs. 3,02,47,939 3. He has....
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....s raised on the assessee by the parties to whom transportation charges were paid were given some amount as cash before the job commenced and then balance amount have been paid in majority of the cases by cheque after deduction 1% tax on the amount. The learned Commissioner (Appeals) has stated that the details were not furnished by the assessee before the Assessing Officer, he sought remand report and the Assessing Officer furnished the remand report vide letter no.ACIT-22(1).Remand Report/2010-11 dated 2nd February 2011. The learned Commissioner (Appeals) has stated that a copy of the said remand report was given to the assessee who in turn gave his comments. The assessee has admitted the fact that for cash payment made of Rs. 1,34,49,488 ....
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..... Therefore, the assessee has not been able to produce evidence for the balance as they have been destroyed by white ants. The learned Commissioner (Appeals) has sustained this disallowance of 10% of Rs. 1,01,17,070 which comes to Rs. 10,11,707, under the head "Transportation Charges". The learned Commissioner (Appeals) further stated that out of petrol, diesel and oil of Rs. 66,08,750, only 1/5th of the bills and vouchers were produced by the assessee as reported by the Assessing Officer. The assessee furnished details of the expenses as paid by cheque and cash of Rs. 43,58,754. The entire amount has been paid by cheque totaling Rs. 22,50,000, for petrol, oil and diesel charges to a single party namely S.V. Filling Station. The payments ha....
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....o substantiate the claim. However, the learned Commissioner (Appeals) has restricted the disallowance of 10% of Rs. 23,84,320. Similarly, the learned Commissioner (Appeals) has stated that no disallowance is to be made in respect of the expenditure claimed under the head "Postage & Telegram" and "Office Maintenance". The learned Commissioner (Appeals) has restricted the disallowance of Rs. 18,91,883, as against total disallowance of Rs. 36,29,753, made by the Assessing Officer. Hence, the Department is in appeal before the Tribunal. 6. During the course of hearing, the learned Departmental Representative submitted that the Assessing Officer was justified to disallow 12% of the entire expenditure claimed by the assessee under various h....
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....r the head "Transportation Charges", for which the assessee could not produce evidence. Further, the learned Commissioner (Appeals) is also justified and resonable to restrict the 10% of the disallowance of the expenditure claimed under the head "Petrol, Diesel and Oil Charges" which were made in cash of Rs. 43,58,754. Similarly, we are of the considered view that the learned Commissioner (Appeals) was justified in restricting the disallowance to 10% of the cash payment of Rs. 9,21,224, in respect of the expenditure claimed under the head "Tyre Replacement Charges". Further, the learned Commissioner (Appeals) has also considered the expenditure in respect of the claim under the head "Vehicle Repair & Maintenance Charges" that the assessee f....