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2013 (8) TMI 108 - ITAT AGRAUnproved freight and route expenses payable - CIT(A) deleted the addition - assessee is engaged in the business of transportation on contract basis - Held that:- A.O. did not appreciate the system of accounting and the entries passed in the books of account. The procedure available for accounting freight payable in the books of account explained to A.O. vide assessee letter dated 18.11.2010 which stated that the assessee has submitted the desired details of freight payable with Freight memo number, date, amount etc. before your good self for your verification. AR in support of the procedure of making entries in books of account demonstrated by referring various pages of the paper book where copies of relevant challans and builty, copies of freight memo for engaging the truck, consignment note, consignment receipt note etc. He has also demonstrated that the assessee has followed such practice and such amounts were shown payable in past years. In the past years the revenue has accepted the system of accounting followed by the assessee and did not make such addition. Thus AR has demonstrated that the outstanding freight payable were paid in subsequent years and in subsequent year the payment to this outstanding freight has been accepted by the A.O. while making the assessment under Section 143(3). The list showing freight payable with date of its payment has been placed. In the light of above admitted facts and as per the detailed dissections made by the CIT(A) CIT(A) has rightly appreciated the system of accounting maintained by the assessee & has rightly deleted the addition - appeal of the Revenue is dismissed.
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