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TMI Blog2013 (6) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the disallowance of only 2% out of freight & transportation expenses, despite the fact 5 out 17 sample vouchers given by assessee were not bearing any signature of recipient & most of payments were in cash ? B. Whether Ld CIT(A) & Hon'ble ITAT were correct in accepting the assessee's explanation that sample vouchers which were considered unsigned by AO,were actually signed, despite the fact that copies given to AO were not having any signature, and original were in possession of assessee, and thus the evidence has to be taken as copies given to AO not were in possession of assessee ? C. Whether Ld CIT(A) & Hon'ble ITAT were correct in deleting the disallowance of only 2% out of freight & transportation expenses, despite the fact that m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, the assessee challenged the same before the CIT (Appeals). The CIT (Appeals) noted that the company is engaged in the business of transportation of lignite, cement, chemicals, LPG, Bauxite, linker, coal, etc. and it owns 84 trucks and also hiring some other trucks. As some of the vouchers were found unsigned and many of them did not have supporting evidence, 2% of the expenses were added back to the total sum. It discussed at length the evidences adduced by the assessee. It concluded that on verification of the books of accounts and other material, the quantity of the goods transported was ascertainable and some had also been recorded in the books of accounts. It also further held that the expenses incurred were proved by duly supported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actions as is evident from the books of the assessee-company. These findings of the Learned CIT (Appeals) could not be controverted by the Ld.DR and, therefore, we do not find any good reason to interface in the order of the Learned CIT (Appeals) on this issue also. Ground No.2 is also rejected in all the six years and, in the result, all the seven appeals of the Revenue are dismissed." 7-8. As can be noted from the detailed discussion reflected in the order of the CIT (Appeals) and reproduced by the Tribunal, both the authorities have thoroughly considered the entire evidence presented before them. On being satisfied that there was cogent material available on the record to sustain the say of the assessee and in absence of any reason to d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness. During the course of search proceedings also, nothing adverse was indicated. Therefore, it held thus : "7.2 In view of the above, I am of the considered opinion that there is no adverse inference that can be taken since no infirmity has been proved by the AO in relation to the transport expenses. No part of the transportation expenses can be disallowed without any evidence. The AO has failed to bring on record any evidence suggesting that any portion of transport expenses is not for the purpose of business. In view of this, there is not basis for any disallowance out of transport expenses. Therefore, the question of enhancement of such disallowance in absence of any credible evidence does not arise. Under the circumstances, I am of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of various small expenditure incurred by them on their fooding and other miscellaneous expenses. Considering these facts, we are of the opinion that in the absence of any specific instance of any such expenditure being of non-genuine nature or in the nature of non-business purpose and also in the absence of any allegation that such expenditure is excessive or unreasonable, such adhoc disallowance made by the Learned CIT (Appeals) for want of proper verification only is not justified in the facts of the present case because in the present case, daily allowances have been paid by the assessee to its drivers and helpers who are generally illiterate or semi-literate and while on tour, they work in adverse conditions. Therefore, we delete this a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Clearing and Forwarding Agents. It makes the payments to such agents as per the bills raised by them and recover the charges for carrying out the work from the customers for composite bills. The CIT (Appeals) noted that the Assessing Officer only on the basis of verification of Clearing and Forwarding accounts has noted that in respect of bills raised by the various shipping forwarding agents, no payments have been made. It also held that in the previous year also, no such payments were made and the opening balance in the subsequent year is shown as 'Nil'. On giving cogent reasons for pointing out the fallacy in such reasonings, it held that the Assessing Officer's disallowance was based on incorrect understanding of financial transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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