2013 (7) TMI 875

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..... after referred to as "the Act") vide his order dated nil for the assessment year 2002-03. 2. The only issue in this appeal of the Revenue is against the order of the Commissioner of Income-tax (Appeals) deleting the addition of reimbursement of expenses of Rs. 72,83,181 paid to truck drivers by the agent of M/s. Newman Lefin P. Ltd. For this, the Revenue has raised following ground No. 1 :                "1. That on the facts and in the circumstances of the case, the learned Commissioner of Income-tax (Appeals) has erred in law as well as on facts, in directing the Assessing Officer to delete the addition of Rs. 72,83,181 on account of reimbursement of the expenses with .....

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..... lated expenses made by the assessee in its books of account. Therefore, the assessee has understated its income by way of showing of excess freight payment. The assessee during the course of assessment proceedings had explained that it entered into an agreement with M/s. Newman Lefin P. Ltd. ("NLP" for short) to work as an agent for the assessee for the State of Orissa who would be allowed Rs. 100 per truck/per trip as reimbursement subject to applicability of tax deduction at source for making payment to truck drivers/owners. The said NLP acting as an agent in pursuance of an agreement for supply of trucks to the assessee and at the point of urgency the assessee made advance payment to truck drivers for their road expenses, etc., but the b .....

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..... truck driver/drivers on behalf of the principal as such the opinion of the Assessing Officer that the transaction of the appellant is a book entry does not hold water and also even rea sonable suspicion required a higher degree of certainty which was totally absent in the said assessment. The opinion formed by the Assessing Officer suffered by any certainty in his findings.              4.2 On a consideration of the relevant facts and evidences pro duced in the hearing I conclude that the addition under disallowance of expenses and added back to the income of the appellant of the amount of Rs. 72,83,181 is unwarranted and the opinion of the Assessing Officer is not based on any m .....

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