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2022 (12) TMI 795 - ITAT KOLKATADisallowance of power & fuel expenses - Addition @ 5% of the total claim of expenses - CIT(A) after going through the details filed by the assessee held that expenses on power and fuel are proportionately high in certain months are not justified and specially in the month of March which was without any justification - HELD THAT:- On perusal of the details filed by the assessee notice that during AY 2013-14 fuel expenses are 14.45% of the total turnover Ct the assessee has purchased its own vehicle. Major Increase in the expenditure of power expenses - As assessee has been able to satisfy the considerable change. However, considering the fact that most of the expenses of power & fuel have been booked at the fag end and there considerable increase in the percentage of this expenditure for the AY 2010-11 onwards, we deem it proper to sustain the addition/disallowance @ 1% of the total claim of expenditure at Rs.2,15,63,895/-. Therefore, against the disallowance of Rs.10,78,194/-, a sum of Rs. 2,15,638/- is sustained and remaining disallowance of Rs.8,62,556/- is deleted. Ground no.1 raised by the assessee is partly allowed. Disallowance of repair & maintenance expenses - HELD THAT:- Assessee has filed complete ledger accounts of the expenditure incurred. Except an amount as incurred in cash remaining/balance amount has been paid through banking channel. We also note that percentage of repair and maintenance expenditure has scaled down as comparable to the preceding year. Disallowance of repair and maintenance expenses needs to be sustained only to the extent which the assessee failed to explain. Thus, remaining addition of is deleted. The assessee gets part relief. Ground no. 2 is partly allowed. Disallowance of unloading & chipping expenses computed @ 5% - HELD THAT:- As most of the expenditure though has been incurred in cash but subjected to deduction of TDS, which has been duly deposited. Both the lower authorities have given general remarks and have not specifically pointed out any such payment, which has been made in cash and TDS not deducted and not supported by relevant documents. Considering the fact that loading and chipping expenses constitutes major parts of the expenditure of the assessee company i.e 32.14% and also considering the fact that turnover of the assessee has increased from 1.26 cr during AY 2010-11 to Rs. 14.92 cr during AY 2013-14 and also net profit which was declared at Rs. 9,04,071/- during AY 2010-11 has risen to Rs.99,15,955/- in AY 2013-14, the books of account regularly audited and complete details have been filed before us in the shape of paper book, we being fair to both the parties are inclined to sustain the disallowance @ 1% i.e at Rs. 4,79,618/- as against Rs.23,98090/- confirmed by the ld. CIT(A). Thus, assessee gets relief at Rs. 19,18,472/-. Ground no.3 is partly allowed.
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