TaxTMI 
TaxTMI 
2012 (10) TMI 607
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....count of the assessee were found unverifiable by the Assessing Officer on examination of books particularly when the truck hiring expenses claimed of Rs.7,08,85,676/- were not verifiable and receipts from Hindalco Limited and expenditure on account of truck hiring were not reflected in the P&L account of the assessee. (b) Whether the Hon'ble ITAT misdirected itself in law in not addressing the ground of appeal taken by the Department before it that the expenditure claimed on hiring of truck/ dumpers were not verifiable and ascertainable and, therefore, the Assessing Officer was correct in rejecting result shown by the assessee and then estimating his income at the rate of 5% of gross receipts. (c) Whether the Hon'ble ITAT misdirected itse....
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.... income and has been duly shown in the P&L Account. The Assessing Office rejected the assessee's contention on the basis of the written agreement entered into between the assessee and the M/s Hindalco containing one stipulation that the M/s Hindalco will pay the assessee Rs.283/- per metric ton inclusive of loading and unloading charges. The assessee claimed certain expenditure obviously on account of payment to the truck owners as according to the assessee, he hired the trucks for transportation of the goods in question for which the contract was awarded to the assessee by the M/s Hindalco. The said expenditure i.e. payment to the truck owners was found by the assessee not varifiable, and therefore, on this ground rejected the books of ac....
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....the assessee also has placed on record one earlier agreement, which is dated 30.3.2002. In the agreement dated 30.3.2002, there is specific condition no.15 providing that the contractor (assessee) will receive charges at the rate of Rs.3/- per metric ton on the quantity's transported by the individual truck owner. However, this agreement was operative upto 31.3.2003 only, therefore, this agreement is not relevant. The assessee now placed on record one of the letter given by the New Chotanagpur Truck Owners Association dated 1.4.2003 conveying that it has been decided by the Association to withdraw the strike going on from 1.4.2003 and it has been conveyed by this letter that as per the talk with the company, the contractor shall be entitled....
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....or transportation of the Bauxite inclusive of loading and unloading charges and the C.I.T.(A) as well as the I.T.A.T. have recorded a finding contrary to the written agreement that the assessee has deducted an amount of Rs.3/- per metric ton and paid the rest of the amount to the transporters or the persons from whom the trucks were obtained by the assessee. There is no mention of the letter dated 1.4.2004 conveying some decision of the awardee company that is New Chhotanagpur Truck Owners Association, wherein there is a stipulation of giving commission of Rs.3/- per metric ton to the assessee. If there is any such letter dated 1.4.2004 of the Truck Owners Association, then whether that was the basis for finding of the C.I.T.(A) and the I.T....