2017 (5) TMI 1806

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.... in law and bad in facts. It is also a result of ignoring and improper appreciating the submissions made orally, and in writing. 2. Thai, in the facts and in the circumstances of the case, and in view of the submissions, materials and copy of decisions and other reliance placed before him, the learned CIT(A) has erred in law and in facts in maintaining the application of s. 145(3) of the Act, as well as the income assessed by learned AO. 3. That, in the facts and in the circumstances of the case and also in view of the nature of business of appellant, the learned CIT(A) erred in law and facts in maintaining the additions and variations made by learned AO, and upholding the assessed income at Rs. 74,34,519 from transport bu....

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....ss. In not doing so the learned CIT(A) erred in law and in facts. 9. That, in view of the nature of appellant's business, the learned CIT(A) has also erred in not appreciating and judging the submission of the appellant judicially that the impugned AO's order under appeal was a result of assumptions and presumptions, without having been verified the details and information submitted by appellant regarding payment to various truck owners (Drivers) by direct enquiry from RTO Office, and/or by summoning truck owner, etc. on getting information from RTO's office by the learned AO. 10. The appellant craves leave to add, alter, amend or delete the grounds on or before the date of hearing of appeal." In fact, there....

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....f freight. Accordingly, the AO requested the assessee to provide the details, name and address of the persons to whom payments were made. In response, the assessee expressed his inability to produce these details by stating that these truck owners belonged to different parts of country and as such it is not possible to ascertain their whereabouts. After considering the reply of the assessee, the AO mentioned that the assessee did not maintain proper details of the freight expenses and in absence of which, payment to the tune of Rs. 11,42,73,095 being 60.60 per cent of the gross receipts remained unverifiable. In absence of these details, the AO further could not ascertain certain vital facts, discussed as below: (i) The amount of p....

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....ect of these variations. The results declared for head office were found to be lower as compared to branch offices. As regards the profit of the head office, the AO stated that being an old and reputed set up directly controlled by the assessee, it was expected to be at par with branch office if not better. 5. As regards the trucks owned by the assessee, the AO observed as under: "Regarding the own trucks, there is one thing which invites attention. The assessee has not cast separate P & L a/c for the head office and the own trucks but has given a consolidated P & L a/c. In this P & L a/c, interest and depreciation attributable to the own trucks has been claimed. The interest on own trucks is Rs. 5,15,640 and depreciati....

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.... at Rs. 3,41,000 for the reasons mentioned in his order. 8. As regards ground No. 1, the AO has pointed out some defects mainly that the assessee has not submitted the name and addressed of the owner of the trucks and their PAN which in fact could have been submitted and are part of the record. The assessee has submitted the truck number and their registration number as well. All the details of the expenses have been submitted is a matter of record. Books of account are maintained in which no defect as such has been pointed out except as above. The details of the driver salary, Bhatta expenses though were on the self made vouchers, but all the details were submitted before both the parties below and the amount paid to the recipient was a....