TMI Blog1994 (5) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... s a registered firm engaged in the business of extraction of stones from the mines owned by it and selling the same. The main work is being carried on at Morak, Distt. Kota. It has a branch office in the name of Abdul Karim Kalilur Rehman. 4. At the assessment proceedings, the Assessing Officer noted that the assessee had debited the following sums as payable to its sister concern M/s Peer Khan Chand Khan for hiring of trucks/dumpers and for polishing stones. Hiring charges Rs. Rs. First period 2,24,000 . Second period 84,000 3,08,000 Polishing charges . . First period 2,56,606, . Second period 3,28,591 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not abnormal or unreasonable having regard to the fair market value of the services utilised by it. He, therefore, deleted the disallowance of Rs. 1,17,039 as made out of hiring charges by the assessee. 7. Similarly regarding the polishing charges, the learned CIT(A) noted that the assessee had shown the quantity of polished stone in sq. Since, the assessee was having its own dumpers/trucks and labour force, the mode of transportation of stone was also quite obvious. He was further of the opinion that the total production of the stone had no relevance with the polishing charges as the entire production of stone might not be necessarily got polished. The learned CIT(A) thus found no justification for making any disallowance under s. 40 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven by the Assessing Officer for making the disallowance. He has very rightly observed that the assessee had paid hire charges at the same rate at which he had received the said charges from other parties. In view of this fact, the charges paid by the assessee for hiring the vehicles/dumpers of others could not have been considered as excessive or unreasonable for invoking the provisions of s. 40(a)(2)(b) of the Act. It may be mentioned that the Assessing Officer had made no efforts to determine the fair market value of the nature of the services rendered by others so it. Under such circumstances, there were absolutely no reasons for making any disallowance out of hire charges and the learned CIT(A) was fully justified in deleting the addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firmation of addition of Rs. 1,17,643 on account of bonus and sales-tax liability. In so far as the issue relating to the disallowance of bonus is concerned, the facts are that the assessee had debited Rs. 2,68,360 to bonus account whereas payment of Rs. 1,60,000 had been made within the statutory period. The payment of the remaining amount of Rs. 1,08,359 was made beyond the statutory period and, hence, the disallowance was made under s. 43B of the Act. 14. At the hearing, the learned counsel for the assessee was fair enough to state that the benefit of payment of Rs. 1,08,359 be given to the assessee in the year of payment. This submission could not be opposed to on behalf of the Revenue on any valid ground. The Assessing Officer may co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and jeep expenses and similar disallowance on account of depreciation thereon. The Assessing Officer had disallowed Rs. 1,01,257 out of car, jeep, motor cycle and scooter expenses for personal use of the vehicles by the partners. The assessee had debited expenditure of Rs. 3,61,091 upto 30th Nov., 1988 and Rs. 1,79,588 upto 31st March, 1980 on running and maintenance of such vehicles. The expenses included sum of Rs. 36,482 relating to a tractor. The tractor was found to have been exclusively used for the business of the assessee. For the remaining vehicles, disallowance at 1/4th out of expenditure as also out of depreciation on the vehicles was made. In appeal, the CIT(A) accepted assessee's contention that motor cycle, scooter were util ..... X X X X Extracts X X X X X X X X Extracts X X X X
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