TaxTMI 
TaxTMI 
2012 (11) TMI 794
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....ts and in the circumstances of the case as well as law on the subject, the learned CIT(A) has erred in partly confirming the action of the AO by sustaining disallowance of Rs.18,19,678/- as against Rs.20,59,480/- made by AO on account of transportation expenses. [2] On the facts and in the circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming the action of the AO in making disallowance of Rs.14,316/- on account of telephone expenses. 2. As regards Ground no.1, the facts of the case are that ereturn of income for the year under consideration was filed by the assessee on 30-09-2008 declaring total income at Rs.41,21,340/-. On perusal of P&L Account, the AO found that the assessee had debited....
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....d details of transporters like contra confirmation along with copy of ITR of the above said persons, copy of bills, TDS certificate and affidavit of M/s. Yash Travels and M/s. Ganesh Travels, and it was ready to produce all the transporters and prove genuineness of transaction. The Assessing Officer did not accept the argument of the assessee for the reason that transporters, as stated above, are not traceable at the given addresses, therefore, identity of these transporters and services rendered by them are not known, and facts and circumstances of the case and argument relied upon by the assessee were the same, as in earlier assessment year, wherein the Id. CIT(A) has already confirmed the additions made on account of payment to above par....
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....essee for verification of transporters only on the basis of inspectorial reports. It is established facts that the person who owns PAN than identity or existence of said person cannot be denied. And when contra confirmation and affidavits submitted by third person to the case than genuineness of transaction is also established. However just with predetermined mind the Ld. DC/7 has simply rejected reply of the assessee as per his findings given at page no 3 & 4 of the assessment order and said that Rs.20,59,480/- transportation expenses disallowed. Affidavits of Transporters are very clearly contains new addresses of transporters, but the learned AO did not take pain to make inquiry on new address of Transporters and also not given opp....
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.... of appeal together for discussion and disposal. 1.4.2 I have duly considered the discussion made in the assessment order and find that the Assessing Officer has made the disallowance on the ground that the facts and circumstances are same, as in the A.Y. 2007-08, appeal in which year against the said disallowance has been dismissed by the CIT(A). Similar disallowance was made in the A.Y. 2005-06 in which year also the appeal of the appellant was dismissed by the CIT(A). I also find that three out of four transporters, viz. M/s S.T. Desai Travellers (Rs.2,05,600/-), M/s Shri Ganesh Travellers (Rs.11,72,630/-) and M/s Yash Travellers( Rs.4,41,448), were also there in the financial year relevant to A.Y. 2007-08 and transportation expenses ....
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....of the ITAT in assessee's own case for AY 2005-06 in ITA no.3736/Ahd/2008 and others, order dated 26-08-2011. 6. We have heard both the parties and perused the facts of the case. We have also gone through the order of the ITAT in assessee's own case for AY 2005-06 in ITA no.3736/Ahd/2008, order dated 26-08-2011, wherein on identical facts, the Tribunal, vide paras 5 of its order, has restored the issue to the learned CIT(A) with a direction to decide the issue afresh in accordance with law, in the light of observations contained therein. Following the aforesaid order of the Tribunal, we restore the issue to the file of the learned CIT(A) with the same direction. This ground of assessee's appeal is allowed for statisti....