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2016 (7) TMI 334 - AT - Income TaxAccrual of income - Addition on account of undisclosed transportation receipts - hiring v/s ownership - Held that:- The balance sheet of the assessee shows that the assessee has no fixed assets in the form of trucks. Therefore, the contention of the assessee seems to be correct whereby he has submitted that he has been hiring the trucks from the truck operators/truck owners and providing them on rent to the company namely Ruchi Soya. The accounts of the assessee have duly been examined and it reveals that neither the maintenance nor the other charges for running of the trucks have been debited to the accounts of the assessee. In our view, the addition sustained by the ld CIT(A) are required to be deleted as the amount were received by the assessee on behalf of the truck owners and therefore the entire amount cannot be treat as income of the assessee. However, since the assessee is claiming commission on each builty to the extent of ₹ 500/- is confirmed. The Assessing Officer is directed to calculate the receipt of the assessee @ ₹ 500/- per builty for the trucks supplied to Ruchi Soya Industries. We hereby clarify that the assessee shall not be entitled to any deduction on account of brokerage, commission, telephone expenses, employees expenses or any other expenses whatsoever against the income so calculated by the ld Assessing Officer. The assessing officer is further directed to give the benefit of any payment made by the assessee (one during the proof of payment) to the truck owners who have supplied the trucks to M/s Ruchi Soya. - Decided in favour of assessee.
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