TaxTMI 
TaxTMI 
2017 (1) TMI 563
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....he case and in law, the Ld. CIT(A) has erred in law and on facts in deleting the disallowance of Rs. 2, 19, 919/- u/s.40A(2)(b). The Ld. CIT(A) ought to have upheld the same. 2. On facts and circumstances of the case and in law, the Ld. CIT(A) has erred in law and on facts in restricting the 'KHARA JAT EXPENSES. ' The Ld. CIT(A) has confirmed expenses of Rs. 81,863/- @ 3% as againstRs.2,72,876/- @ 10% disallowed out of total expenses of Rs. 27,28, 756/-. 3. On facts and circumstances of the case and in law, the Ld. CIT(A) has erred in law and on facts in deleting the disallowance of Rs. 18, 50, 620/- on account of shortage of groundnut oil and that of Rs. 9, 89, 325/- on account of shortage of coconut oil." 3. In this case r....
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....by the assessing officer, the assessee has filed appeal before the learned CIT(appeal). The learned CIT(appeal) has allowed the appeal of the assessee. The decision of the learned CIT(appeal) is reproduced as under "4. I have perused the assessment order and the written submission put forth before me by the AR of the appellant. I have also carefully perused the judicial pronouncements relied upon by the AR of the appellant. The appellant is engaged in trading of edible oil, which he procures from various sources, gets them packed and the same are sold under his own developed brand known as 'Gulab' brand. This business is in existence since many years. It is also seen that, the 'excessive' payment made by the appellant to t....
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....rom the records that, similar additions made in other years were also deleted on first appeal. Therefore, this ground is allowed." 5. During the course of appellant proceeding the learned DR relied on the order of the assessing officer. On the other hand the learned counsel supported the order of learned CIT appeal. We have gone through the submission of both the sidese and find that the assessee has made payment excess by 3% to the three above stated related parties because of sourcing of double filter edible oil. We observed that it is clear that double filter oil is more costly than the filter oil and it also fetch more price in the market than the filtered oil. We find that learned CIT appeal has justified his decision keeping in view....
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....e Ld. Commissioner of Income Tax(A) is reproduced as under:- "6. I have perused the assessment order and the written submission filed by the AR of the appellant. It can be seen from the assessment order that, the AO had made an arbitrary comment that the cash kharaja expenses are not verifiable. He accordingly disallowed lump sump 10% out of the same. The only adverse inference drawn by him was that, the vouchers do not contain serial number, rate of payment, destination where Groundnut Oil / Cottonseed Oil is delivered and the vouchers are not signed by any supervisor / manager. Against, the AR submitted that, the appellant's books of account were audited under the provisions of Section 44AB of the Act and that the appellant's re....
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....t proceedings, the assessing officer observed that the assessee has claimed shortage of 54670 kgs. In this connection, he stated that the shortage to be on the higher side as the assessee was not manufacturing the oil. He therefore allowed shortage to the extent of 3038 kg out of ground nut oil and 2432 Kg. out of cotton seed oil resulted in addition of Rs. 28,39,945/- to the total income of the assessee. The assessee preferred appeal before the Ld. Commissioner of Income Tax(A). 10. The Ld. Commissioner of Income Tax(A) has deleted the addition made by the assessing officer, the decision of the Ld. Commissioner of Income Tax(A) is reproduced as under:- "7.1 From the above it can be seen that, although the AO starts his finding with the ....
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....t pipe, which can be termed as dead level. Hence such quantity of oil also forms part of shortage. Further during the transmission of oil some portion gets leaked from tubes. Therefore such waste also forms part of shortage. After transferring the oil to shortage tanks, the oil is filled into containers manually by employees by putting one by one container below the exit tap of storage tank, which refers to tinning. During the tinning also oil gets spread on earth. In view of the above at each and every stage of tinning, there are many circumstances when the oil gets spread, which is uncollectable as the same is an edible product hence one has to take care it. The AR also submitted that, in the immediate preceding year i.e. for AY 2009-10 t....