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2018 (8) TMI 1191 - ITAT KOLKATADisallowance u/s 40A(3) - cash payments for hiring trucks beyond the limits prescribed - disallowance of conveyance expenses - disallowance based on surmises - Held that:- the fact that the truck drivers, insist on cash payments for smooth supply of trucks, is not denied by the revenue. It is also not disputed that to ensure that at no point of time, the assessee is deprived of trucks, he was forced to pay in cash. The Assessing Officer in this case has not doubted the business expediency or genuineness of these transactions. We also find that the copies of the bills produced evidence that payments were made though agents. - Additions made u/s 40A(3) deleted - Decided in favor of assessee. On the issue of disallowance of conveyance allowance the ld. Assessing Officer has erroneously held that conveyance allowance is same as “Travelling Allowance”. Both these expenditures are different. In any event, as there are no vouchers produced, we restrict the disallowance to 25% of the expenditure claimed. - Decided partly in favor of assessee.
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