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2018 (12) TMI 51 - ITAT DELHIAddition on account of punitive charges paid to railway as over-loading charges - Held that:- Punitive charges by Railways cannot be considered to be penal in nature, and it is actually in nature of compensation paid by assessee for carrying out extra load, which may cause wear and tear to tracks of Railway Department. See CIT vs. Ahmedabad Cotton Manufacturing Co.Ltd [1993 (10) TMI 1 - SUPREME COURT]. Addition on account of water supply expenses - Held that:- CIT(A) restricted disallowance at ₹ 1,27,500/-, by considering the fact that supply of drinking water to employees/labourers at mining site with tanker is a must, to maintain workforce strong for extra loading and unloading of iron ore. Further, AO has not brought on record any contradictory facts which would lead to conclusion that expenditure has not been incurred for any other purposes. As there is no other contrary observations by Ld.AO which is based upon any material evidence, we do not find any reason to uphold addition. We therefore do not find any infirmity in the same and uphold view of CIT (A) in respect of this issue. Addition on account of hiring charges and rack loading charges paid to parties - violation of section 40A(2)(b) - Held that:- As observed from above reproductions that assessee deducted TDS. Merely because, according to Ld. A.O., payments were not reasonable, cannot be basis for disallowance. We are therefore inclined to uphold the view of Ld. CIT (A). - decided against revenue
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