TaxTMI 
TaxTMI 
2018 (10) TMI 1219
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....he books of account/bills etc. 2. Addition u/s 68 of Rs. 83,20,000/- 3. When the assessee preferred an appeal before the CIT(A), the CIT(A) deleted the additions made by the AO. 4. Aggrieved by the order of CIT(A), the revenue is in appeal before us raising the following grounds of appeal: 1. The order of the learned CIT(A) is erroneous in law and on facts. 2. Learned CIT(A) erred in not upholding the action of the Assessing Officer rejecting the Books of Accounts ignoring the facts brought on record by the A.O. for such rejection of Books of Accounts. 3. Learned CIT(A) erred in not upholding the estimation of Income @5% of gross turnover disregarding the facts brought on record by the Assessing Officer particularly that no proper evidence was made available for the expenses incurred. 4. Learned CIT(A) erred in deleting the addition of Rs. 83,20,000/- made under section 68 of the Income-tax Act, 1961, without appreciating the facts brought on record. 5. Any other ground that may be urged at the time of hearing." 5. Ground Nos. 1 & 5 are general in nature, hence, need no adjudication. 6. As regards ground Nos. 2 & 3 a....
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.... hire pay order. vi) Each day the details of the lorries transporting the goods is separately maintained in bundles for each of the product transported. vii) Based on the said details the payments are recorded in the books of account. viii) The books of account are audited and the return of income is based on the said books of account. 7.1 The AR further submitted that the other major expense is on loading and unloading for which the payments are made to the hamalis available on the spot, for which vouchers are maintained. The AR also submitted that the full lorry-wise details of the lorry hire charges were available and that the signature of the driver is available firstly at the time of payment of advance, secondly, at the time of loading the material and thirdly, at the time of collecting the balance after showing proof of delivery of goods. The AR submitted that similarly detailed record is kept of the brokerage/commission paid. It was further submitted that the books of accounts had been duly audited. The AR also submitted that the books of accounts along with supporting evidence as called for was submitted before the Assessing Officer during the ....
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.... micro information are not available in the regular receipts & payment register maintained by the assessee. In our view, each industry has its own method of accounting. AO has to understand the system of the particular industry. In this case, the ld. CIT(A) has verified the system himself and found to be proper. We are in agreement with the findings of ld. CIT(A). Therefore, ground Nos. 2 & 3 raised by the revenue are dismissed. 11. As regards ground No. 4 relating to addition of Rs. 83,20,000/- u/s 68 of the Act, the Assessing Officer found from a perusal of the cash book that the assessee had made capital introduction of Rs. 1,12,70,000/- in cash and capital withdrawal of Rs. 1,10,45,728/-. However, as per the capital account, the following entries had been made: Opening capital balance as on 1.4.2008 Rs. 29,55,845/- Add: Net profit for the AY 2009-10 Rs. 38,74,558/- C/o capital balance as on 31.3.2009 Rs. 68,30,412/- 11.1 The assessee vide his letter dt. 30.12.20011 submitted as under: "We have different business as proprietor, we hire vehicles to transport goods from one place to another and at the same time we have our own vehicles to transp....
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....ra Road Ways and reintroduced in the books as and when required. The AR submitted that the payment made by New Mahindra Road Ways for the assessee's own lorries amounted to Rs. 1,24,91,249/- for which income of Rs. 2,52,000 had been admitted u/s. 44AE. 11.5 The AR also submitted that the business of Mathosri was of brokerage or commission and not the plying of own lorries and to this extent, there appeared to be a mis-appreciation of facts by the Assessing officer. 11.6 After considering the submissions of the AR of the assessee, the CIT(A) deleted the addition by observing as under: "8.7 I have considered the facts on record and the submissions of the AR. With a view to verify the assessee's claim, the AR was directed to produce the cash book and the supporting bills and vouchers for one specific date, 02.04.2008. On examination of the cash book for this day, it is seen that a sum of Rs. 34,995/- is debited as advance lorry hire paid for gypsum. It is seen from the statement of 'gypsum - advance lorry hire' for this date that the sum of Rs. 34,995/- includes a sum of Rs. 18,145/- paid for two lorries owned by the assessee, viz. AP 29 TA 1019 and AP 2....