TaxTMI 
TaxTMI 
2017 (1) TMI 45
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.... the AY 2010-11 on 23/09/2011 declaring an income of Rs. 92,95,090/-. The AO completed the assessment u/s 143(3) by making the following additions/disallowance: i) Disallowance of vehicle hire charges Rs. 1,20,03,110 ii) Disallowance u/s 40a(ia) Rs. 3,39,125 iii) Disallowance Rates & Taxes Rs. 13,73,924 iv) Disallowance of cash payment Rs. 3,32,692/-. 3. The assessee is in appeal before us raising the grounds against the disallowances mentioned at i), ii) and iv), as the disallowance mentioned at iii) was allowed by the CIT(A). Therefore, we deal with the said issues as under: 4. As regards the disallowance of vehicle hire charges Rs. 1,20,03,110, the AO observed that during the course of ....
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....payee. Since the assessee has failed to furnish the details of payments of Rs. 1,20,03,110/- the same stands disallowed and added back to the total income of the assessee by the AO. 5. Before the CIT(A), during the course of appeal proceedings, the assessee filed party-wise break of hire charges and the same were forwarded to the AO for verification by the CIT(A). AO, after verification, submitted his report, which was extracted by the CIT(A) at pages 5 to 7 of his order. In response to the remand report, the AR of the assessee submitted that as there were no adverse remarks on the expenditure of Rs. 1,20,03,110/-, the same may kindly be allowed. 6. After considering the submissions of the assessee and remand report of the AO, the CIT....
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....er month. The Assessee is also required to hire some of the vehicles on temporary basis when there is a short fall in the vehicles plied due to repairs or breakdowns. It is submitted that the assessee firm maintains regular record of the vehicles plied for each of the Companies and raises a bill and send the bill by email to the respective companies who on receiving the bill, deposits the bill amounts to the credit of the assessee firm in the designated Bank Branch Account. All the payment of the hired vehicles are made by cheques only. 7.2 It is submitted that the Assessee received total hire charges of Rs. 13,95,02,235/- from various companies and TDS has been made by the said companies on the total amount. The assessee apart from his ....
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....ort authorities regarding the proof of registration of the vehicle. 7.3 Before us, the assessee filed paper book of about 402 pages containing copies of the agreement with various companies, copies of invoices of different companies, copies of proforma trip sheets, copies of vehicle hire charges paid for the month of May, 2009, copy of bank confirmation letter regarding payment of vehicle taxes. 8. The ld. DR submitted that the assessee has to acquire the PAN details before making payments and relied on the orders of revenue authorities. 9. Considered the rival submissions and perused the material facts on record. The assessee has received total hire charges of Rs. 13.95 crores and all these receipts are subjected to TDS. At the sa....
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....y of vehicles from the regular contractors. The assessee has to depend upon the temporary arrangement for about 15%. It is normal in these line of business. 9.2 Since the payments are below Rs. 20,000/- limit and it is not contravening any provision of section 194C, there is no obligation on the part of the assessee to acquire the details of PAN or registration certificate from the temporary transporters, we are inclined to allow the ground raised by the assessee and delete the disallowance of 1,20,03,110/- made by the AO towards vehicle hire charges. 10. As regards the disallowance u/s 40a(ia) of Rs. 3,39,125/-, the AO observed that as seen from the profit and loss account the assessee has made a claim of Rs. 13,25,036/- as interest ....
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....charges as per hire purchase agreement but no document was filed before us nor before the revenue authorities. Accordingly, the grounds raised are rejected. 15. As regards the disallowance of cash payment of Rs. 3,32,692/-, the AO observed that from the ledger account, it was noticed that the maintenance expenses were shown as cash payments by the assessee at Rs. 13,30,770/-. On being asked by the AO to produce details such as bills, vouchers etc., the assessee filed self bills and vouchers which do not contain the details of the payee and the nature of payment. Hence, the AO disallowed 25% of the said vehicle maintenance charges. 16. Before the CIT(A), the AR of the assessee contended that in the assessee's line of business, bills ar....