2026 (4) TMI 183

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....ear 2018-19. 2. The assessee has raised the following grounds of appeal: "1. Ld. CIT(A) has erred in law & facts in confirming addition made by AO in respect of disallowance of carting expenses on the basis of incorrect presumption of double debit of single expenses. 2. CIT(A) has erred in law & facts in confirming the assessment order made abruptly without considering the reply and evidences attached with the reply in response to draft assessment order." 3. The facts of the case are that the assessee is a partnership firm engaged in the business of civil contracting, including supply of pipelines and construction of roads and buildings for government as well as private entities. The assessee filed its return of inco....

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....4/2021 R/Sir. Ref: Notice No.: ITBA/AST/F/143(3)(SCN)/2020-21/1031449244(1) Dated 12.03.2021 For A.Y.2018-19 Sub: Submission of disagreement with draft assessment order Please refer to above, we submit that we are not agree with the draft order prepared by your office. The issues of additions mentioned in the draft order is not in accordance with the Act and also it will be injustice to us if order is passed same as draft order. Further, our case was selected for limited scrutiny only with the reason of "Contract receipt of fees" but issues covered under draft order is other than the reason of selection of the assessment. The issues of draft order are as under. i. Double claim of single expense -....

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....AY17" is common. It proves that the carting expenses is for the purchase only. We have passed separate accounting entries also. Copy of vouchers of accounting entries are enclosed herewith. * From the perusal of the images no. 1 and 2 (above) and accounting vouchers enclosed herewith, it is evident that there are two separate expenses and being the accounting policy adopted, carting expenses for purchase of material is debited in the account of carting expenses. * There is huge volume of such debit notes and invoice, we have produced only one sample. We will submit all such vouchers on intimation of your office. * Plea taken by your office that "accounting treatment adopted by the assessee is not correct" is basel....

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....he appellate order. 6. The Ld. DR, on the other hand, supported the orders of the lower authorities. 7. We have heard the rival contentions and perused the material available on record. From the records, it is evident that the assessee had consistently maintained that the cement suppliers issued separate debit notes/invoices towards transportation charges, distinct from the invoices raised for supply of cement. The assessee also placed on record sample copies of purchase invoices, debit notes for carting expenses, and corresponding accounting vouchers to demonstrate that the purchase value recorded under the head "Purchases" did not include the carting component. It is also observed that the detailed reply filed by the assessee dated ....

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....0 560. Dist. - Porbandar (GUJARAT) Phone : (02801) 304200 Fax : (02801) 304384, 304376 DEBIT NOTE / FREIGHT PAYMENT ADVICE G.S.T.NO .: 24110200056 C.S.T. NO .: 24610200056 DT. : 13-09-2005 DT : 13-09-2005 C.E. Regn. No / ECC No. : AAHF55211.004001 GMC154 ON WORK OF BRIDGE MEHSANA MEHSANA Dde 26/05/2017 012519941 wich has been aranged by us on your regout thân agimont ng. 11 15521 Rate MT FRT. Code Destination Amount R$. 2 MEHSANA CITY-MEHSANA 913.00 PRT 15521.00 For SAURASHTRA DUYÊNT UNITED Ps in words : Owlan Než9121/013729 Ifteen Thousand Five Hundred Twenty One Only Sover Taxes a paid by the consignor 1 AUTHORNEED SIGNATURY Image No. 1 Document 2 FROM FA....