TaxTMI 
TaxTMI 
TaxTMI 
2023 (4) TMI 236
X X X X Extracts X X X X
X X X X Extracts X X X X
....u/s 69 of the Income Tax Act, 1961 (hereinafter referred to as the Act) on account of unexplained expenditure @12% of the entire expenditure on Lorry Hire Charges. 3. Facts in brief are that the assessee is engaged in the business of transportation of goods. During the course of assessment proceedings, the AO observed from the details filed by the assessee that the assessee has claimed Rs. 36,00,22,353/- as vehicle operating and maintenance expenses under the head other expenses. Accordingly, the assessee was called upon to furnish the bifurcation of said expenditure which was duly furnished by the assessee. The ld AO randomly checked and verified some of the hired vehicle from the website of VAHAN national registered e-portal, Ministry of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....so referred by the AO while passing the order, came to the conclusion that most of the vehicles which have been stated to be either motor cycles or motor cars and tractors were in fact not so but the goods carrier and only in few cases there was no information available on the website of the Ministry. The Ld. CIT(A) while deleting the disallowance gave a number of examples from page no.16 to page no. 21 in the appellate order giving details of vehicles registrationwith the Ministry of Road Transport & Highways, Govt. of India and categorically noted that all these vehicles were good carriers and not as observed by the AO. Finally the Ld. CIT(A) observed that all vehicles as referred to by the AO were quite active and duly registered on e-po....
X X X X Extracts X X X X
X X X X Extracts X X X X
....findings of the AO as wrong. The Ld. D.R. submitted that if at all there was any fault in the manner of verification carried out by the AO, the Ld. CIT(A) would have very well verified the facts/details as filed by the assessee and came to an independent conclusion on the issue. The Ld. D.R. therefore prayed the order of Ld. CIT(A) may kindly be quashed and that of the AO kindly be upheld or alternatively if there is no fault in the manner of conducting the assessment the same may kindly be restored to the file of the AO to frame new de novo assessment. 6. The Ld. A.R. of the assessee strongly opposed the contention of the Ld. D.R. by submitting that the assessee is a big goods transporter for which it hired vehicles from market. During th....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., has come to the conclusion that all these expenses were fully vouched. The Ld. A.R. also submitted that the Ld. CIT(A) has given finding that all the vehicles as pointed out by the AO were duly registered as transport good carriers on the Website and only in a couple of cases there was no national registration available of non-digitization of data. The Ld. A.R. also submitted that the AO has just extrapolated the disallowance on all the expenditure as claimed by the assessee in respect of 9068 vehicles which was totally fallacious and wrong and no extrapolation or estimation is permissible on the entire expenditure pointing out defects in one or two cases which was also wrong as has been negated by the Ld. CIT(A) in the appellate order. T....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... destination and lorry hire amount etc. in respect of 9068 vehicles before the AO . The AO test checked some of the vehicles on this web portal VAHAN, Ministry of Road, Transport & Highwaysand came to the conclusion that some of these vehicles were either maxi cab, or motor cycle or tractor and finally disallowed a sum of Rs. 4,09,36,296/- @ 12%of the entire lorry hire expenses. The Ld. CIT(A) allowed the appeal of the assessee by passing a detailed and speaking order by holding that all the vehicles as test checked by the AO were duly registered as goods carriers on the web portal of VAHAN, Ministry of Road Transport & highways and in couple of cases the data were not available due to non-digitization of data. The Ld. CIT(A) examined the e....