2010 (5) TMI 876 - AT - Income Tax

Summary

Issues involved: Cross-appeals by Assessee and Revenue regarding disallowance of "Carting Expenses," shortage of goods, accident expenses, vehicle expenses, depreciation, and telephone expenses.

Disallowance of "Carting Expenses": The dispute arose from the disallowance of a portion of the claimed Carting Expenses. The Assessing Officer disallowed 2.5%, which was reduced to 1% by the CIT(Appeals). The Tribunal, considering past cases, upheld the CIT(Appeals' decision, citing lack of objectionable evidence from the Revenue's side.

Shortage of Goods Disallowance: The Assessing Officer disallowed a sum due to unverifiable shortage of goods. The CIT(Appeals) upheld the disallowance at a reduced amount of Rs. 8,000, following past cases where similar disallowances were made. The Tribunal affirmed this decision due to lack of corroborative evidence from the assessee.

Accident Expenses Disallowance: A portion of accident expenses was debited without proper explanation, leading to disallowance by the Assessing Officer and CIT(Appeals). The Tribunal upheld this decision, as the assessee failed to provide supporting evidence for the liability claimed.

Vehicle Expenses and Depreciation Disallowance: Disallowances at the rate of 10% for vehicle expenses and depreciation, as well as telephone expenses, were made by the Assessing Officer and affirmed by the CIT(Appeals). The Tribunal upheld these disallowances, considering the personal nature of the expenses and lack of log-sheet maintenance by the assessee.

In conclusion, the Tribunal partly allowed the Assessee's appeal and dismissed the Revenue's appeal in the matter. The decision was signed, dated, and pronounced on 21st May, 2010.