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TMI Blog2012 (2) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... uthorities is justified. Dis-allowance of machinery maintenance – Held that:- Assessing authority has disallowed 15% of the claim, which appears to be just & proper, as the assessee was not in a position to explain the expenditure in a convincing manner. Dis allowance of running expenditure of 8.67 lacs out of total 11.67 lacs was made for the reason that differences existed between the expenditure claimed by the assessee vis-à-vis the bills produced by the assessee – Held that:- The assessee is earning his income from operation of lorry transport. Therefore, a reasonable amount of expenditure has definitely to be allowed in respect of running of the trucks. Therefore amount allowed of Rs. 3 lakhs is not sufficient. We modify the allowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was necessary to incur expenditure so as to maintain the machine in working condition. The reason explained by the assessee is acceptable but for the quantum of expenses claimed by the assessee as well as for various infirmities pointed out by the assessing authority. Some amount of expenditure has necessarily to be incurred to keep the machine in a working condition. But, when the machine has not been operated in the relevant period, there cannot be any huge expenditure towards diesel and oil. So also the particulars of expenditure claimed by the assessee have not been properly maintained and explained by the assessee. Therefore, in the facts and circumstances of the case, we find that a disallowance is definitely called for. Now, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing authority disallowed the claim. The Commissioner of Income-tax(Appeals) allowed a sum of ₹ 3 lakhs and disallowed the balance of Rs. 8,67,865/-. The disallowance was made by the assessing authority for the reason that differences existed between the expenditure claimed by the assessee vis- -vis the bills produced by the assessee. It was also pointed out by the assessing authority that proper vouchers were not available as endorsed by the drivers of the trucks. We considered the matter. The assessee is earning his income from operation of lorry transport. Therefore, a reasonable amount of expenditure has definitely to be allowed in respect of running of the trucks. We find that the amount allowed by the Commissioner of Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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