TMI Blog2016 (1) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... irmity in the order of the ld.CIT(A), we are inclined to uphold the same by dismissing the ground raised by the Department. - Decided in favour of assessee. Disallowance of diesel and driver batta expenditure - CIT(A) deleted the disallowance - Held that:- We are of the considered opinion that the expenditure claimed by the assessee are reasonable and incidental to business and the ld.CIT(A) has rightly analyzed the nature of expenses and therefore, we are inclined to uphold the order of the ld.CIT(A) and dismiss the grounds of the Revenue.- Decided in favour of assessee. - I.T.A.No.2377/Mds/2014 - - - Dated:- 6-11-2015 - SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER For The Appellant : Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e misplaced and could not be located and produced ledger copy of the assessee s account appearing in Books of account of supplier M/s Suguna Foods Ltd for the financial year 2009-10. The Assessing Officer, on perusal of ledger account found net purchases are ₹ 4.5 crores and assessee has made cash payments on innumerable occasions aggregating to ₹ 2,20,02,003/-. 4.2 The ld. AR submitted that Rule 6DD defines the exceptions of applicability of sec. 40A(3) of the Act depending upon the nature of business expediency and other relevant factors of poultry farming but ld. Assessing Officer made addition of purchases ₹ 2,20,02,003/- to the returned income and completed assessment on 30.3.2013 vide order passed u/s 143(3) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal. The ld. DR argued that the provisions of sec. 40A(3) of the Act are applicable and the exceptions under Rule 6DD are not available to the assessee. The ld. CIT(A) failed to consider what are the exceptional circumstances in which the cash payments could be made and relied only on the evidence of supplier of poultry M/s Suguna Foods Ltd who are in the business of broiler farming, which is not a conclusive proof and prayed for restoration of the addition made by the Assessing Officer. On the other hand, the ld. Counsel for the assessee relied on the order of the ld. CIT(A) and filed written submission by citing the provisions applicable and pleaded for dismissal of Revenue s appeal. 4.4 We heard the rival submissions of both parties, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce @25% of total expenses which worked out to G90,215/-. The ld.CIT(A) in the appellate proceedings considering the clarifications and type of business in unorganized sector directed the Assessing Officer to delete the addition and has observed at para 11 of his order as: The Assessing Officer has not made any comparative analysis of the diesel expenses and batta expenses with the sales made at the various selling points of Chennai over a period of the past year or two to see whether it is on the higher side. Neither has he given any specific reasons as to why the sales made at different selling points at Chennai would not entail the diesel expenses and batta expense as charged by the assessee. Nor has he cross checked and found bogu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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