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2016 (8) TMI 857 - AT - Income TaxTruck running expenses disallowed - Held that:- We find that the truck running expenses claimed in this AY is commensurate with the turn-over of the assessee compared to A.Y.2010-11 and 2011- 12. The truck running expenses from A.Y.2007-08 to 2011-12 shows the increasing trend. This increase in the percentage of the expenses to the turn-over is understandable and commensurate with the rate of inflation. No adverse inference ought to have been therefore drawn against the assessee. We therefore are of the view that CIT(A) was justified in deleting the addition made by AO. Godown Expenses disallowed - Held that:- Expenditure in question was for the business of the Assessee and the order of CIT(A) on this issue in allowing the claim does not call for any interference Retainer fee paid disallowed - Held that:- The contention of the revenue before us was that since the assessee was having its own vehicle there was no need for any retainer fee. In our view this contention of the revenue is not acceptable because the nature of this fee is wages and not any retainer fee paid in the process of transportation. We therefore do not find any reason to interfere with the order of CIT(A) in allowing the claim does not call for any interference. Tansportation charges disallowed - Held that:- Before us the contention of the revenue is that the truck running expenses and transportation charges are one and the same. We are of the view that in the light of the evidence brought before CIT(A), the contention of the revenue cannot be accepted Addition on increase in the loan amount in the balance sheet of the assessee - Held that:- in the light of the evidence to show that the loan amount was availed from the sister concern, the order of CIT(A) in allowing the claim does not call for any interference. Decided against revenue
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