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2015 (1) TMI 1264 - AT - Income TaxDisallowance of the freight and fuel expenses - Held that:- We find that the assessee is into transport business and has 4 trucks. In the preceding assessment year (AY 2007-08), the assessment was carried out u/s 143(3) of the Act, wherein the fuel expenses of ₹ 21,56,080/- was accepted by the department, which worked out to 36.34% of the total receipt of ₹ 59,31,687/-. In the instant year, the assessee claimed freight/fuel/other charges of ₹ 21,92,980/-, when the total receipt was ₹ 61,44,530/- which works out to 35.69% only. When the department has accepted the expenditure of 36.34% in AY 2007-08, in that year, so when the expenses is less i.e. 35.69% in this year, the ad hoc disallowance without bringing in comparable cases is not justified. Moreover, as per section 44AE, the income from four trucks works out to ₹ 1,64,000/- whereas the assessee has declared an income of ₹ 5,93,612/- which puts the assessee’s case in a better position; and the assessee’s contention that taking into consideration the transport business carried out by the assessee, wherein expenses are incurred for which no bills can be obtained always, cannot be ruled out. So we find force in the argument of the ld. AR, that in the aforesaid facts and circumstances and considering the previous year results too, the ad hoc disallowance was not warranted. So we direct deletion of the addition - Decided in favour of assessee
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