9911796707
TMI Blog2015 (1) TMI 1264X X X X Extracts X X X X X X X X Extracts X X X X ..... Gupta Goods Carrier and is engaged in transport business and supply of building material. The assessee had his own trucks and also engaged trucks of others for transporting the material and made payments to the truck owners. The assessee filed return of income on 30.09.2008 at Rs. 5,93,612/-. The case was taken up for scrutiny after the approval of CCIT, Ghaziabad. Accordingly, the notices u/s 143(2) and 142(1) of the Income Tax Act, 1961 (hereinafter 'the Act') were issued. In response, the AR for the assessee attended the assessment proceedings from time to time and filed written submissions along with necessary details. The AO, after considering the submissions of the AR for the assessee, made certain additions. The AO observed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit declined to 12.98% as against Rs. 16.83% shown in the immediately preceding year. Thus the basis of disallowance made by the AO is upheld in principle but is on the higher side. It would amply meet the ends of justice if the amount of disallowance is restricted to Rs. 4,00,000/-. Thus the appellant is entitled for relief at Rs. 1,00,000/- on this score. Ground of appeal No.3 is partly allowed." 4. The assessee, being aggrieved, against the sustenance of addition of Rs. 4 lakhs is in appeal before us. 5. Ld. AR for the assessee reiterated the submissions made before the ld. CIT (A) and submitted that during the year under consideration, the assessee had received the transportation. charges at Rs. 61,44,530/- against which the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AY 2008-09 AY 2007-08 Total Receipts Rs.61,44,530/- Rs.59,31,687/- Freight/Fuel/Other Charges Rs.21,92,980/- Rs.21,56,080/- %age of Freight / Fuel 35.69% 36.34% AO/CIT disallowed Rs.4 lakhs Nil The ld. AR further submitted that the net profit rate in the year under consideration was 20.13% whereas in the preceding year it was 16.80% and in this regard, he has submitted a comparative chart of trading results which is as under :- Comparative Chart of Trading Results Particulars 2008-09 2007-08 RECEIPTS 6,144,530.00 5,931,687.00 GROSS PROFIT 2,192,980.00 1,825,077.00 G.P. RATE 35.68% 30.70% NET PROFIT 1,237,205.00 999,757.00 N.P. RATE 20.13% 16.80% AFTER DEPRECIATION 13.03% 7.44% He submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /other charges of Rs. 21,92,980/-, when the total receipt was Rs. 61,44,530/- which works out to 35.69% only. When the department has accepted the expenditure of 36.34% in AY 2007-08, in that year, so when the expenses is less i.e. 35.69% in this year, the ad hoc disallowance without bringing in comparable cases is not justified. Moreover, as per section 44AE, the income from four trucks works out to Rs. 1,64,000/- whereas the assessee has declared an income of Rs. 5,93,612/- which puts the assessee's case in a better position; and the assessee's contention that taking into consideration the transport business carried out by the assessee, wherein expenses are incurred for which no bills can be obtained always, cannot be ruled out. So we fin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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