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ABC India Ltd. Versus Addl. CIT, Range-I, Kolkata

2016 (6) TMI 167 - ITAT KOLKATA

Allowability of en route expenses - Held that:- AR before us submitted that such expenses were also claimed in earlier years and in this regard no such disallowances were made by Authorities Below. We also find that these expenses are commensurate with the sales declared by the assessee in comparison to earlier years. We also further find that AO has disallowed the claim on ad hoc basis without bringing out any defect and deficiency in the submission of assessee with regard to such expenses clai .....

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ssessee

Addition on account of sale of scraped / old and discarded trucks - Held that:- Assessee has reduced the WDV of the relevant block of vehicle from the sale price of the trucks. However, Authorities Below has treated the sale price as ₹ 50,000/- of the truck and the difference of ₹ 35,000/- has been treated as income of the assessee as income which is incorrect as per the provision of Income Tax Act. In case of any sale of the assets pertaining to the block of asset .....

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r of assessee - ITA No. 2078/Kol /2013 - Dated:- 11-5-2016 - Shri N. V. Vasusdevan, Judicial Member And Shri Waseem Ahmed, Accountant Member For the Appellant : Shri V. N. Purohit, FCA For the Respondent : Shri Sallong Yaden, ACIT-SR-DR ORDER Per Waseem Ahmed, Accountant Member This appeal by assessee is arising out of order of Commissioner of Income Tax (Appeals)-XII, Kolkata dated 12.03.2013. Assessment was framed by ACIT, Ranje-11, Kolkata u/s 143(3) of the Income Tax Act, 1961 (hereinafter r .....

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50,000/- made to disclosed receipts of ₹ 1,95,000/- of sale of scraped/old and discarded losses. 2. First ground raised by assessee is as regard to that Ld. CIT(A) erred in sustaining the expenses of ₹ 2.50 lakh on account of en route expenses. 3. Facts in brief are that assessee is a Limited Company and engaged in the business of multi-model transport organization, freight forwarders, shippers and air freight bookers. During the year assessee has claimed an expenditure of ₹ 95 .....

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on ad hoc basis. An addition of ₹ 4,78,730/- was made to the total income of the assessee. 4. Aggrieved, assessee preferred an appeal before Ld. CIT(A) who partly confirmed the action of AO by observing as under:- I have considered the finding of the AO and the written submission filed by the AR during the appellant proceeding. There is no denying the fact that while a accompanying heavy vehicles employees have to expend in cash for expenses incurred. But at the same time the AR should ha .....

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f of assessee and Shri Sallong Yaden, Ld. Departmental Representative appearing on behalf of Revenue. 5. Ld. AR before us submitted that Authorities Below have disallowed the aforesaid expenses only on estimate basis and without mentioning the relevant vouchers of the expenses as produced before the Authorities Below. Ld. AR also submitted that such en route expenses were also claimed in earlier years and no such disallowances were made for the same. Further, Ld. AR submitted that these are the .....

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d certain expenses which were incurred in cash and only self-made vouchers were available in support of those expenses. The AO opined that genuineness of such expenses cannot be established on the basis of selfmade vouchers involving cash payments and he disallowed such expenses on ad hoc basis. However, Ld. AR before us submitted that such expenses were also claimed in earlier years and in this regard no such disallowances were made by Authorities Below. We also find that these expenses are com .....

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ntained. In this view of this matter, we are inclined to reverse the orders of Authorities Below on the basis that assessee has been claiming these expenses consistently for the last many years and such expenses have not been disallowed. Hence, we allow assessee s ground of this appeal. 7. Next ground is as regards to that Ld. CIT(A) erred in sustaining the addition of ₹ 10.50 lakh on account of sale of scraped / old and discarded trucks. During the years assessee has sold 30 trucks @ S .....

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of ₹ 10.50 lakh [30 trucks x ₹ 35,000/- (Rs. 50,000- 35,000.00)] to the total income of assessee. 8. Aggrieved, assessee preferred an appeal before Ld. CIT(A) who confirmed the action of assessee by observing as under:- I have considered the finding of the AO and the written submission filed by the AR. I think all old trucks with Registration No. have to be sold even as a scrap after taking permission/after giving intimation to the RTO. Therefore, assessee s claim that names and addr .....

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necessary details of the parties to whom the trucks were sold were duly submitted before Authorities Below along with addresses. On the contrary, Ld. DR stated that all trucks are having registration certificate issued from the Transport Authority. The transaction for transferring the ownership from the assessee to the buyers should be duly recorded with the Transport Authority but the assessee failed to submit the necessary details in support of the transactions for selling trucks to the concer .....

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