TaxTMI 
TaxTMI 
2019 (11) TMI 1335
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....xpenses 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 distribution business of milk and other products of Saras Dairy. The assessee filed his return of income ....
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....duced 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 station assigned to them. The assessee has employed six drivers for six delivery vehicles @ Rs. 12,00....
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....ointed 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, the part of the expenses were disallowed for want of supporting bills and vouchers. The ld. CIT(A) while confirming the disallowances made by the A....