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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 ..... to maintain supporting evidences and vouchers in respect of their food and miscellaneous expenses. Again with nothing on record to hold such expenses as non-genuine or not for the business, both the authorities have is also rightly concluded. - Decided against the revenue. Clearing and forwarding expenditures - held that:- With regard to the clearing and forwarding expenses and general labour charges, the truck association fees, etc. were not required to be recovered from the end-users. However, those which were paid towards clearing and forwarding charges, were necessarily recovered from the end-users. Eloquently, the facts vindicated the stand taken by both the CIT (Appeals) and the Tribunal in setting aside the conclusion of the Assessing Officer. We see absolutely no reason to interfere with as both the authorities have given cogent reasonings while concluding the said issue. - decided against the revenue. - Tax Appeal No. 64 of 2013 - - - Dated:- 21-3-2013 - AKIL KURESHI AND MS. SONIA GOKANI, JJ. For the Appellant : Pranav G. Desai. For the Respondent : ------- ORDER:- Ms. Sonia Gokani, J. - Challenging the judgment of the Income-Tax Appellate Tribunal ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, 2% of the total such expenses were added back to the total income of the assessee, adding the sum of Rs.22,45,933/- to his income. 5. Aggrieved by such addition, 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 vouchers with complete details of the expenses as also with the name of the payee, registration number of the truck, etc. The daily truck-wise details such as names of owners, date of hire, number of days for which hired, rate of hire, date of payment, number of trips made, et ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of disallowance of 10% daily allowance given to the drivers. Such question arises in the following factual background : 9.1 The assessee has stated that since he is in transport business, some of the payments were made by way of cash and the issue before the Assessing Officer was whether such payment made was genuine or not and whether the same was for the purpose of business or not. 9.2 The disallowance of expenses at the rate of 10% was made by the Assessing Officer. When challenged before CIT (A) it was also noted that the trucks, which were hired, were owned by different truck owners and on verification of the books of accounts and related vouchers, it was ascertained that the rate of payment by way of cash/cheque was the same when the same was checked in different months in respect of different trucks hired by the assessee. On the basis of these details, the CIT (Appeals) found nothing wrong in the payment and it was held not to be in excess of prevailing market rate. It did not find anything on record that such expenditure was not for the purpose of business. During the course of search proceedings also, nothing adverse was indicated. Therefore, it held thus : "7.2 In v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness 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 adhoc disallowance in all the years." 9.4 On careful examination of the findings of both the authorities, we notice that both of them have dealt with the issue of disallowance of 10% daily allowance given to the drivers appropriately on the basis of substantive material available in support thereof. It can also further be noted that the Tribunal was right in holding that it is next to impossible to expect these drivers and helpers to maintain supporting evidences and vouchers in respect of their food and miscellaneous expenses. Again with nothing on record to hold such expenses as non-genuine or not for the business, both the authorities have is also rightly concluded. Predominantly, the issue is decided on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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