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2012 (2) TMI 66 - ITAT, CHENNAIDis-allowance of expenditure towards diesel and oil including repairs and maintenance in respect of poclain – Lorry transporter - Held that:- In present case, poclain was not operated during the previous year therefore, there cannot be any huge expenditure towards diesel and oil. However some amount of expenditure has necessarily to be incurred to keep the machine in a working condition. Thus, disallowance is definitely called for, however it is reduced to some extent. Expenses relating to crane and poclain – Held that:- For the reasons already stated in respect of poclain, we find that this nominal disallowance made by the lower authorities is justified. Dis-allowance of machinery maintenance – Held that:- Assessing authority has disallowed 15% of the claim, which appears to be just & proper, as the assessee was not in a position to explain the expenditure in a convincing manner. Dis allowance of running expenditure of 8.67 lacs out of total 11.67 lacs was made for the reason that differences existed between the expenditure claimed by the assessee vis-à-vis the bills produced by the assessee – Held that:- The assessee is earning his income from operation of lorry transport. Therefore, a reasonable amount of expenditure has definitely to be allowed in respect of running of the trucks. Therefore amount allowed of Rs. 3 lakhs is not sufficient. We modify the allowance to Rs. 6 lakhs and disallow the balance amount – Decided partly in favor of assessee.
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