9911796707
TMI Blog2017 (6) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... ismissing the appeal on this ground is wrong, arbitrary and misconceived. 2. That the appellant craves for leave to alter, amend, modify any of the grounds and/or take additional Grounds before or at the time of hearing of this appeal." 3. The Assessee is a company. It is engaged in the business of rendering transport services and the automobile services. The assessee during the previous year commenced its business of call taxi services. In the course of assessment proceedings the AO noticed that the assessee has claimed a sum of Rs. 37,26,420/- in its profit and loss account under the head 'miscellaneous expenses' and deductible while computing income from business. According to the AO the assessee was requested to furnish details and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee considered 1/5th of the expenditure as attributable to A.Y.2004-05 and since the expenses, though of revenue in nature, was such that the benefit of those expenses would enure for a period of time, the remaining 4/5th of the expenses was claimed by spreading it over in the subsequent assessment years. The assessee pointed out that such accounting treatment cannot be the basis to disallow a revenue expenditure in the present assessment year. 5. The CIT(A) however confirmed the order of AO observing as follows :- "Appellant's submission and facts available on record is carefully considered. Assessment record was called for and verified. On verification of the assessment record it is seen that appellant has merely given various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Taxi Meters 153,080 30,616 122,464 Vehicle Accessories 86,760 17,352 69,408 Printer for Taxi Meters 685,436 137,087 548,349 Advance Against IVH 1,559,020 311,804 1,247,216 Advance Against MDT 266,000 53,200 212,800 Vehicle Registration Exp. 348,443 69,689 278,754 Advance - Driver Recruitment 129,099 25,820 103,279 Advance - Taxi Operations 446,462 89,292 357,170 3,703,460 740,692 2,962,768 8. In the course of assessment proceedings, the AO issued a notice dated 26.10.2005 u/s 142 (1) of the Act in which he had called for certain details. The details with regard to the miscellaneous expenses had not been called for by the AO. The assessee in a letter dated 27.09.2006 has however furnished the detai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e installed in the taxi owned by a third party. Therefore these items of expenses have to be regarded as revenue expenditure. With regard to the findings of CIT(A) that the bills and vouchers, names and address of the person to whom payments were made were not furnished by the assesee, we have already seen that the assessee was not called upon to furnish all these details in the notice dated 26.10.2005 issued u/s 142 (1) of the Act by the AO. Nevertheless in the order of assessment the AO has observed that the evidence for incurring these expenses were not furnished. It was therefore necessary for the assessee to have furnished the necessary evidence before the CIT(A). We are of the view that the expenses in question cannot regarded to be a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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