TaxTMI 
TaxTMI 
2022 (8) TMI 1039
X X X X Extracts X X X X
X X X X Extracts X X X X
....or the assessment year 2010-11. The revenue has raised the following substantial questions of law for consideration :- i) Whether on the facts and in the circumstances of the case an order of the Learned Income Tax Appellate Tribunal "B" Bench, Kolkata is perverse in allowing the assessee's expenditure to the tune of Rs.7,68,60,417/-? ii) Whether on the facts and circumstances of the case the order of the Income Tax Appellate Tribunal is perverse as the profit was estimated @ 12% on entire turnover. Whereas, the Assessing Officer did not reject the books of accounts? iii) Whether on the facts and circumstances of the case the order of the Learned Income Tax Appellate Tribunal is perverse as there is no direct n....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mated at 12% as against the addition made by the Assessing Officer of the entire turnover and, accordingly, a direction was issued to the Assessing Officer to make an addition of Rs.13,60,158/- and the balance addition was directed to be deleted. Aggrieved by such order, the revenue preferred appeal before the learned Tribunal. The learned Tribunal has extracted the findings recorded by the CITA and opined that the CITA has estimated the assessee's profit at 12% under the peculiar circumstances and by exercising his co-terminus powers as that of the Assessing Officer and also further held that the CITA has correctly appreciated the entire facts and, thereafter, held that Section 40(a)(ia) of the Act pre-supposes genuine business expendit....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... However, the assessee had filed some details and documents but did not file all the documents nor produce the books of accounts, bills and vouchers as called for by the Assessing Officer. The assessee was issued another notice dated 4th February, 2013 to submit the details of transport charges in a tabular format which was followed by another notice dated 19th February, 2013. After repeated notices, on 25th February, 2013 the authorised representative of the assessee appeared and submitted a list of 145 transporters mentioning the payments made against each of them. The names of the said transporters have been mentioned in paragraph 2.5 of assessment order. After noting the details given by the assessee, the Assessing Officer has point....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ar 2009-10. There is every possibility of that it is just an accommodation entry to nullify the transport income of Rs.8,75,71,214/-. Because the assessee failed to produce any single detail which can prove that the assessee is expertise in this business. It is beyond doubt that the assessee had not done any work of transport. The firm has no infrastructure to provide transport service. So the claim of transport charges also no genuine. Under the circumstances, the expenditure of Rs.7,82,12,027/- not allowable and added to the total income of assessee. Penalty Proceeding u/s 271(1)(c) is initiated separately for furnishing inaccurate particulars. However, the transport charges also attract the provisions of section 40(a)(ia) of the....