2025 (10) TMI 1226

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....,40,82,053/-; 2.0 On facts and circumstances of the case and in law, Ld. CIT(A), in alternate manner, erred in making the disallowance of transport expense u/s 40(a)(ia) of Rs. 4,75,92,207/- for non-fulfilment of obligation to deduct TDS, though the provision of Sec.194C does not apply on such transaction and such disallowance was not made in the assessment order; 3.0 The Ld. CIT(A), before confirming the addition of transport expense of Rs. 4,75,92,207/-, ought to have considered the understated vital facts, being; a) The entire transport expense had been incurred in normal course of business and correctness of supporting documentary evidences had not been disputed in the assessment, remand and appeal proceeding; b) The confirmations of transport receipts from Chhattisgarh State Government and payments made by appellant through truck union association, etc are filed on record; c) The mere non-reflection of vehicle number in the 'VAHAN' Portal due to non-digitization of old vehicles would not disprove the bonafide transactions of the appellant; d) The Ld. AO had not conducted any independent enquiries and had not any not....

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....Rs.5,40,82,053/-under the head other expenses. The learned AO observed on the basis of information / details filed by the assessee that certain trucks which were stated to be used by the assessee for transporting the goods from railway racks to the PDS centers, were not appearing in the internet site, 'VAHAN' national Register E-services, Ministry of Road, Transport & Highways, Government of India. The AO noted some instances in Para No.2.2 of the assessment order. The learned AO also noted that certain trucks were appearing repeatedly in the details submitted by the assessee. The learned AO also noted that the vehicle numbers mentioned by the assessee were wrong and consequently disallowed 88% of the total lorry expenses which comes to Rs.4,75,92,207/- as unexplained expenditure u/s 69C of the Act and added the same to the income of the assessee. 05. In the appellate proceedings, the learned CIT (A) also upheld the order of the learned AO by observing and hand holding as under: - "6.7 Final Conclusion: Yogesh Transport Private Limited (A.Y. 2014-15) In conclusion, the appeal of the appellant is dismissed. The addition of Rs. 4,77,21,330/- as unexplained expend....

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....ve, transport gate pass number and receipt by the depos. For the sake of ready reference, the sample copy is extracted below: 07. Similarly on page no.15, the assessee furnished the date wise and depo wise transportation expenses paid by the assessee during the year, a sample copy is extracted below: - 08. We have also examined the vehicle wise details of vehicles hired by the assessee and amount paid by the depo a copy of which is extracted below on sample basis: - 09. We also note that assessee furnished truck union certificate, certifying that lorries were hired from the truck unions, the copies of such certificate are available from page no.170 to 183. The assessee has also filed the details of these vehicles as per transport department which are available at page nos. 184 to 195. Therefore, in view of the above evidences placed by the assessee before the learned AO as well as the learned CIT (A) and before us also, we observe that the transport expenses were genuine. We also note that these expenses were not infact doubted by the learned AO but the learned AO has doubted that these trucks were not shown in the 'VAHAN' national Register E-services, Ministry of Road Tra....

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.... at all estimation of income has to be made that estimation has to be made on reasonable basis. The ld. AR relied on the following decisions: - "1. Maa Mangala Transport Vs. ITO Ita No. 313/Ctk/2012 dated 24.08.2012. 2. Sri Raghavendra Lorry Services Vs. DCIT in ITA No. 41/Viz.2020 dated 22.08.2022 3. Sahani Transport Corpn. Vs. DCIT 58 taxmann.com 297 (ITAT Cuttack) 4. CIT Vs. Sandeep Bus services Pvt. Ltd. 316 ITR 244 (HC-Punjab & Haryana)" 012. We note that in the case of Maa Mangala Transport Vs. ITI (supra), the estimation made by the co-ordinate Bench at the rate of 4% by observing and holding as under: - "6. We have heard the rival contentions and perused the impugned orders of the authorities below and the material available on record. The learned Counsel for the assessee relied on the decision of this Bench of ITAT in the case of M/s.Bhukta Transport v. Income-tax Officer (supra) when 3% Net profit was held to be accepted further relying on the decision of this Bench of ITAT in the case of M/s.Parida Transport for the Assessment Year 2001- 02. We are inclined to hold that the transport business as contractor could not result ....

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....¤• 1/1/2014 To 31/12617 सप्लाईज आदेश क्रमांक 50120140006 प्राप्ति RR Date ट्रकदालान नम्बर टुक नम्बर मैदान अदिति दोरा बंद siPa GatePass GatePass WHR Dale Deling hallen Trackno Dalisto Gratuita Date दजन (25 (50) zarf Number Date T 02/01/2014 08 9: 50120 406 CG19869 305/2014 31/010014 EELF- Bags 0 Jap 50 Kg 253.50 Teljes 0 507 Read 253.500 Graf Daha 112698 30/01/0014 Recital Srio . 564466 2 0 1/2014 TRY 501 0 480 COMO85 दुमें 30010014 30010004 0 327 163.50 0 307 163.500 102897 31/01/0014 - 554470 योग 0 834 417.00 834 417.00 417.00 जिला योग 0 834 417.00 0 0 834 C. 30/010014 30/010014 @ 367 183.50 0 367 183.500 201110 29/01/2014 77 574051 1 1/201475 STS0048 CONGNEL ONY 5041/201430/01/2014 0 407 203.....

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....7000 6 CG07 T 1487 BEMETRA 400 20 350 7000 7 CG18GA 1841 BEMETRA 200 10 350 3500 S CG04Q 1487 BEMETRA 700 35 350 12250 9 CG04W 3654 BEMETRA 540 22 350 7700 10 CGO4DA 1542 BEMETRA 500 25 350 8750 11 CG10C 5571 PANDARIYA 400 20 530 10600 12 CG10C2485 PANDARIYA 300 15 530 7950 13 CG17M 1864 PANDARIYA 350 17.5 530 9275 14 CG04B5874 PANDARIYA 540 22 530 11660 15 CG04D1152 PANDARIYA 600 30 530 15900 16 CG04M4589 PANDARIYA 500 25 530 13250 17 CG04M4590 PANDARIYA 500 25 530 13250 18 CG04M4678 PANDARIYA 500 25 530 13250 19 CG04D3245 PANDARIYA 520 26 530 13780 20 CG07M 9675 PANDARIYA 480 24 530 12720 21 CG04E5422 KAWARDHA 600 30 470 14100 22 CG04DB9888 KAWARDHA 700 35 470 16450 23 CG04JA3412 KAWARDHA 600 30 470 14100 24 CG04JA5286 KAWARDHA 500 25 470 11750 25 CG04AB1231 KAWARDHA 540 27 470 12690 26 CG04AC1287 KAWARDHA 620 31 470 14570 27 CG004AD1876 KAWARDHA 450 22.5 470 10575 28 CG04MA1765 KAWARDHA 580 29 470 13630 29 CG04NA1845 KAWARDHA 500 25 470 11750 30 CG04DG2564 PITHORA 500 25 420 10500 31 CG04GJ2794 SARAIPALI 450 22.5 440 9900 32 CG04TA5986 SARAIPALI 600 30 440 13200 33 CG04JA4581 SARAIPALI 500 25 440....