TaxTMI 
TaxTMI 
2014 (3) TMI 937
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....,661/being diesel expenses incurred in earlier year and Rs.58,075/being hire charges/ interest accrued to Kotak Mahindra in the earlier year which are not allowable as per the mercantile system of accounting followed by the assessee? (b) Whether in fact and cicumstances of the case, the learned ITAT has erred in law in not confirming the disallowance of entire unpaid carting expenses of Rs.30,97,735/made by the A.O. On the ground that the same is not verifiable and substantiated? (c) Whether in the facts and circumstances of the case, the learned ITAT has erred in law in confirming the order of CIT(A) deleting addition of Rs.21,98,753/on account of difference in receipt as per TDS certificate and as per P & L account even through the ....
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....ared, confirmed only portion of the payments for carting. On such basis CIT (Appeals) reduced the addition to Rs.5 lakhs making following observations: "15.4. The submissions of the Auithorised Representative have been considered carefully. It is true that there are no vouchers for unpaid carting expenses but the disallowance of entire unpaid carting expenses is found to be not proper. Mostly, the unpaid carting expenses are in respect of small truck owners in respect of whom the amounts are outstanding and these truck owners are engaged through brokers, this practice has been followed over the years and this is not the first year of such occurrence. The Authorised Representative has given a comparative figure of G.P. for the preceding y....
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....that since the Assessee could not produced evidence for unpaid carting expenses and since some of the parties to whom summons were issued and the statement of the parties did not tally with the confirmations filed by the Assessee. We are of the view that some disallowance need to be made. However considering the totality of the facts we are of the view that the ends of justice shall be made if a lump sum addition of Rs.8 lacs is made instead of 5 lacs made by the CIT (A). We thus direct accordingly. Thus this ground of the Revenue is partly allowed." 5. Counsel for the revenue submitted that in absence of reliable evidence, the entire disallowance should have been confirmed by the CIT (Appeals) and the Tribunal. The Commissioner without ....
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....e order of Assessing Officer Assessee carried the matter before CIT (A). CIT (A) after considering the submissions of the Assessee deleted the addition by holding as under: 13.2. I have considered the submissions of the Authorised Representative carefully. A certificate has been filed by the Authorised Representativ from CFCL as per page 235 of the paper book wherein it has been stated to have made provision from accounting year 2000-01 on account of expenses payable to the appellant to the tune of Rs.21,97,915/, which consisted of bill amounts for interest payable, handling expenses, secondary transportation, DSP expenses, standardization expenses and warehouse rent and it has deducted TDS on the said amount to the tune of Rs.70,050/and....
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....ncome shown by the appellant as carting income from CFCL in the year in appeal. Accordingly, as the carting income for Rs.21,98,753/i. e. the difference in receipt has been accounted by the appellant in the subsequent year as per the details submitted by the Authorised Representative at pages 232 to 234 of the paper book, the same is not to be added in this year. Hence, the addition made by the Assessing Officer of Rs.21,98,753/is deleted with direction to reduce the credit to TDS as above. 30. Aggrieved by the order of CIT(A) Revenue is now in appeal before us. 31. Before us the learned D.R. relied on the order of Assessing Officer where as the learned A.R. supported the order of CIT(A). 32. We have heard the rival submissions and....