TMI Blog2015 (7) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... not applicable. Before us, Revenue has not produced any material on record to controvert the findings of ld. CIT(A) - Decided against revenue. Addition on account of luxury bus expenses - CIT(A) deleted the addition - Held that:- CIT(A) after considering the submissions and the documents has given a finding that except of ₹ 500 per day which was given to driver for lodging, there was no food expenditure relating to driver salary, food expenses etc which was included under the total vehicle expenditure. He after considering the totality of the facts, deleted 50% of the addition. Before us, Revenue has not brought any material on record to controvert the findings of ld. CIT(A). We therefore find no reason to interfere with the order of ld. CIT(A)- Decided against revenue. - I.T.(SS) A. No. 427/AHD/2011, I.T(SS)A No. 449/AHD/2011 & C.O. No. 183/AHD/2011 - - - Dated:- 25-6-2015 - Shri Shailendra Kr. Yadav, J.M. And Shri Anil Chaturvedi, A.M.,JJ. For the Appellant : Ms. Nidhi Srivastava CIT/DR For the Respondent : Shri R.K. Jindal, A.R. ORDER Per Shri Anil Chaturvedi, A. M. 1. These 2 appeals, of which 1 is filed by the Assessee and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the appellant were going alongwith appellant's parcels containing jewellery and cash by bus from Jaipur to Ahmedabad on 14/12/2007. On some information with the police, the Jaipur police stopped the bus. at nearby Jaipur. The police found the two persons along-with six bags. The police enquired with the employees-and the employees stated that they are the employees 'of the appellant. The police unpacked all the parcels and later on, called the Income tax department. The department took action u/s 132 of the act. Both the employees and partner in the spontaneous statements u/s.131 and 132(4), stated that they are courier and impugned parcels belongs to their, customers. The list of these parties along with the parcels that was also seized and marked as As7 containing 15 pages. During the assessment preceding, the appellant filed separate replies for each 73 jewellery seizure and- 7 cash seizure. In the replies, addresses of the parcels/ cash senders and receivers/stock details etc. were filed. During the appellate proceedings, the original affidavits of the .parcels/cash senders and receivers were filed. The copies of these 80 letters containing more than 1500 pages we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... branch cash book on 14/12/2007. Hence, the impugned parcels become part of the books of accounts. 12. After considering all the facts, surrounding circumstances and available record, I hold that the appellant has discharged his burden that the appellant was carrying these parcels containing jewellery and cash as a courier. The provisions of S. 69A of the Act would be applicable only, in the case in which the assessee is found to be owner of..., In the present case, on the proper appreciation of the facts and circumstances, it cannot be held that the assessee was the 'OWNER of the articles/ parcels found in the possession of its employees. The appellant was the mere custodian of the articles handed over to him which were being transported from Jaipur to Ahmedabad. The nature of business carried on by the appellant is very much akin to the services rendered by the post office. 13. When it is established that these parcels were held in the capacity as a courier, then there is no question of ownership of the appellant oh seized jewellery and cash. Hence section 69A is not applicable in. the appellant's case. Therefore, the addition of ₹ 52,82,068/- is deleted. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion on account of luxury bus expenses. 7. A.O on verification of the books of accounts and vouchers noticed that Assessee has incurred expenses on account of luxury bus activities which included expenses on account of driver salary, diesel expenses, repair expenses, food expenses etc. He further noticed that 30% of the expenses were by self made vouchers and were not supported by third party evidences. He therefore considered 25% of the expenses of ₹ 26,75,000/- to be unverifiable and accordingly disallowed ₹ 6,68,750/- on account of expenses to be for non business purposes. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who granted partial relief to the Assessee by holding as under:- 19. I have considered the submissions of the appellant and I have gone through the Xerox copy of daybook. I find that there is only ₹ 500 given per day to driver for lodging and except this ₹ 500/-, there is no any expenditure relates to driver's salary, food expenses etc. which is included in the total vehicle expenditure of ₹ 89,19,141/-. However, I find that some expenses like police expenses etc. have also been debited in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3. The order passed by the Hon'ble CIT(A) is bad in law, contrary to legal pronouncements to the extent he confirmed the action of the AO. The additions/disallowances confirmed by him are unwarranted and same be deleted now. 13. Before us, ld. A.R. submitted that the grounds raised by the Assessee in the C.O in support of the order of ld. CIT(A). Considering the aforesaid submission of ld. A.R. the C.O of Assessee is dismissed. Now we take up IT(SS)A No. 449/AHD/2011 (Assessee s appeal) 14. The ground raised by Assessee reads as under:- 1. The Ld. CIT(Appeal) has erred in law and on facts in confirming the addition of ₹ 1,10,000 out of various expenses treated as incurred for non business purposes. 2. The Ld. CIT(Appeal) has erred in law and on facts in confirming ₹ 3,34,375/- being 50% of the addition of disallowance of luxury bus expenses ₹ 6,68,750/-out of total expenses of ₹ 89,19,141/-. Ld. CIT. (Appeal) further erred in law and on fact in ignoring and arbitrarily brushing aside the evidence of the Appellant without any cogent and rational region. This action of the CIT.(Appeal) is arbitrary, irrational and entirely based on conj ..... X X X X Extracts X X X X X X X X Extracts X X X X
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