TaxTMI 
TaxTMI 
2019 (11) TMI 1335
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....rs Amount (Rs.) Disallowed (Rs.) Power & Fuel Expenses 16,16,254/- 3,32,250/- Repair & Machinery 1,15,188/- 23,037/- Wages 8,64,000/- 1,80,000/- Conveyance Expenses 95,600/- 19,000/- Telephone Expenses 18,677/- 4,000/- Other expenses 5,077/- 1,000/- Total 27,14,796/- 5,59,287/- The action of the ld. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by quashing the above disallowances of Rs. 5,59,287. 2. The assessee craves its rights to add, amend or alter any of the grounds on or before the hearing." 2. The assessee is an individual and proprietor of Gravita Sales Agencies, engaged in the distrib....
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.... rate of diesel in running the vehicles by respective drivers which serves as an internal check and reduced an administrative work on his part. The fixed amount of the assessee are audited U/s 44AB of the Act without any qualification made by the auditor. Once the instances of six delivery trucks is not in dispute then fuel and running charges of these trucks is an allowable expenditure. The assessee has entered into a contractual understanding with its drivers to reimburse for fuel expenses at fixed rate and therefore, they were not asked to submit bills and vouchers. As regards the labour wages, the ld AR has submitted that each vehicle requires a separate driver who is not only drive the vehicle but also deliver the goods at the delivery....
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....t the A.O. has made 20% disallowances of these expenses for want of supporting evidences produced by the assessee. The A.O. has specifically pointed out that the assessee though claimed these expenses and booked in the P&L account, however, no vouchers or bills have been produced by the assessee in support of these expenses. This fact is not in dispute as the assessee has accepted that he has not produced any bill or voucher in respect of all these expenses, 20% of which were disallowed by the A.O. The A.O., thus accepted the fact that the expenditures claimed by the assessee are not bogus claim. However, since the assessee has not able to prove that these expenses are wholly and exclusively incurred for the business of the assessee, ....
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....hers were not available. (iii) It is an admitted fact that the vouchers for the various expenses were not maintained by the appellant and in the absence of vouchers, it cannot be ascertained whether these expenses were incurred for the purposes of the business of the appellant. The appellant did not file any evidence about the contractual understanding with the drivers as claimed during the appellate proceedings for the first time. Further, the appellant could not controvert the findings of the AO as recorded in the assessment order. Therefore, in view of the above discussion, I do not find any reason to interfere with the findings of the AO as recorded in the assessment order and consequently, the disallowance of Rs. 5,59,287/- is....