2025 (2) TMI 1564

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....sioner of Income Tax, Circle - 13(1)(2), Mumbai, u/s. 143(3) of the Income-tax Act (hereinafter referred to as the "Act"), dated 27.12.2018 for Assessment Year 2016-17. 2. Grounds taken by the assessee are reproduced as under: 1.(a) The learned Assessing officer has erred in making the addition of Rs. 32,31,483/- debited to the Profit & Loss account towards the difference in rate written off which is upheld by CIT(Appeals). 2. The learned Assessing Officer has erred in making addition of Rs. 2,61,363/- towards disallowance of expenses claimed and subsequently disallowed in the return of income by the appellant under Section 37(1) of the Income Tax Act, 1961 which is upheld by CIT (Appeals). 3.(a) The learned As....

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.... assessee M/s. Modern Road Makers deducted additional kilometres run by its vehicles apart from its actual route framed by them. Assessee explained that additional kilometres were run by its vehicles since it took longer route for the safety of vehicles, material as well as to take care of wear and tear of the trucks. In order to explain the rate difference claim, assessee placed on record copy of work order, forming part of paper book from page 33 to 53. Based on this work order, it computed the amount of rate difference which was claimed by the assessee from the principal contractor but owing to its decline was charged to profit and loss account. The said computation is extracted below for ready reference: 3.1. This computation of rate....

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....ed by documentary evidences on record, we delete the addition of Rs. 32,31,483/-. Accordingly, ground no.1(a) raised by the assessee is allowed. 5. In respect of additions/disallowances made for which assessee has raised ground No. 2, 3(a) and 3(b), it was pointed out that the same have been suo moto added back by the assessee in its computation of profits and gain of business and profession reported in the return filed by it. In this respect, reference was made to page-3 of the paper book, wherein computation of total income is placed on record. From the perusal of the same, it is noted that all these three additions/disallowances made by the ld. Assessing Officer have already been added back by the assessee to arrive at profits and gai....