9911796707
TMI Blog2013 (12) TMI 633X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee by the decision dated 30.5.2012 of a coordinate bench of this Tribunal in assessee;s own case for assessment year 2005-06 in I.T.A. No.3293/M/2008, wherein, the Tribunal vide para 4 of its order has upheld the action of authorities below, observing as under:- "4. After considering the rival submissions and perusing the relevant material on record it is observed from page 30 of the Paper book that for the immediately preceding assessment year 2004-2005, the Assessing Officer disallowed 10% of motor car expenses, staff welfare expenses, office expenses etc. and that for a year prior to that i.e. assessment year 2003-2004, the A.O. disallowed 10% of motor car expenses, staff welfare expenses, sundry expenses, repairs and maintenance, dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supported by third party vouchers." 6. At the time of hearing, ld A.R. submitted that above issues are covered in favour of assessee by the decision dated 30.5.2012 in assessee's own case for assessment year 2005-06 in I.T.A. No.3293/M/2008. He referred paras 7 & 8 of the order of the Tribunal. Ld D.R. dutifully supported the orders of authorities below. 7. We have heard ld representatives of parties and perused the orders of authorities below as well as the decision of the Tribunal dated 30.5.2012(supra). 8. We observe that assessee is engaged in the business of clearing and forwarding agent and also financing business. During the course of assessment proceedings, assessee was requested to submit copy of ledger account of its principal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing in the ledger account of the assessee. This amply proves that the amounts were promptly displayed in the books of account. Insofar as the application of section 69C is concerned, we find that the same cannot be attracted because section 69C applies where in any financial year an assessee has incurred any expenditure and he offers no explanation about the source of such expenditure or part thereof, or the explanation, if any, offered by the assessee is not satisfactory. It is then that the amount covered by such expenditure or part thereof is deemed as income of the assessee for such financial year. The bedrock for making any addition u/s 69C is that there must have been some expenditure incurred by the assessee, the source of which is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crore being reimbursement of octroi, freight and other expenses represents credit to the accounts of octroi, freight and other expenses, there cannot be any question of making disallowance on account of cash payments. Admittedly this amount represents reimbursement of expenses which are already finding place in the debit side of the respective expenditure account. By crediting such amount of Rs.2.29 crore to the respective expenditure accounts, the assessee did not incur any expenditure requiring any disallowance, but indeed reduced the expenditure on getting reimbursement of such expenses from its principal companies. By passing the entries to the tune of Rs.2.29 crore, the assessee recovered such expenses already incurred thereby leaving ..... X X X X Extracts X X X X X X X X Extracts X X X X
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