2022 (5) TMI 1160

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....f law was framed by this Court for consideration: "Was the ITAT right in disallowing sum of Rs.4,02,600/- incurred towards transportation charges ? 3. The background facts are that the Assessee derives its income from sale of foreign liquor. Its return for the AY in question was picked up for scrutiny. In the assessment order dated 30th March, 2001, the Assessing Officer (AO) noted that the Assessee had received credit notes totaling to Rs.4,91,350/- from M/s. Raman Distilleries Ltd. (RDL). As against this, the Assessee showed that it had received from RDL a total commission in the form of credit notes of Rs.88,750/-. Thus, the AO concluded that the Assessee had suppressed commission amounting to Rs.4,02,600/- i.e. Rs.4,91,350/- (-) minu....

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....uthorized representative (AR) were not considered by the ITAT. By an order dated 27th April, 2009 the ITAT recalled its earlier order dated 2nd September, 2008. 8. Thereafter the appeal was again heard by the ITAT and disposed of by the impugned order dated 27th August, 2009. Specific to the disallowance of the sum of Rs.4,02,600/- towards transportation charges, the ITAT observed that the Assessee had not produced any agreement with M/s. RDL to demonstrate that under an arrangement it had to incur the relevant expenditure and later claimed reimbursement. The ITAT observed that the queries posed to the AR were not satisfactorily answered. The materials produced by the Assessee did not sufficiently explain the transaction in question and, t....