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2016 (6) TMI 167 - ITAT KOLKATAAllowability of en route expenses - Held that:- AR before us submitted that such expenses were also claimed in earlier years and in this regard no such disallowances were made by Authorities Below. We also find that these expenses are commensurate with the sales declared by the assessee in comparison to earlier years. We also further find that AO has disallowed the claim on ad hoc basis without bringing out any defect and deficiency in the submission of assessee with regard to such expenses claimed by assessee. we also cannot ignore this fact that the assessee has been claiming such expenses since the last several many years and no disallowance was made on account of this. So we are of the view that the consistency should be maintained. In this view of this matter, we are inclined to reverse the orders of Authorities Below on the basis that assessee has been claiming these expenses consistently for the last many years and such expenses have not been disallowed. - Decided in favour of assessee Addition on account of sale of scraped / old and discarded trucks - Held that:- Assessee has reduced the WDV of the relevant block of vehicle from the sale price of the trucks. However, Authorities Below has treated the sale price as ₹ 50,000/- of the truck and the difference of ₹ 35,000/- has been treated as income of the assessee as income which is incorrect as per the provision of Income Tax Act. In case of any sale of the assets pertaining to the block of assets then the sale price should be reduced from the relevant block by the amount of sale price and when the block ceased to exist after adjusting the sale price then the excess amount shall be treated as income under the head “capital gains” and that cannot be taken as “business income”. In the instant case, the Authorities Below without understanding the provision of Income Tax have taken a view that the amount of ₹ 10.50 lakh as income from its business which is incorrect - Decided in favour of assessee
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