9911796707
TMI Blog2015 (7) TMI 735X X X X Extracts X X X X X X X X Extracts X X X X ..... ok filed before the Revenue authorities. We have also gone through the remand report of the AO dt. 8.2.2013. We find force in the contention of the Ld. Counsel that the AO has submitted the remand report without any verification. Considering all these facts in totality and also considering the fact that at the time of search, ₹ 10 lakhs were surrendered in the name of the assessee which has been accepted by the Revenue. Restriction of the impugned addition to ₹ 5 lakhs is justified and therefore we decline to interfere. - Decided against revenue. Disallowance of freight expenses - CIT(A) deleted addition - Held that:- A perusal of the chart to consider the ratio analysis in respect of freight income vis-à-vis freight charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been received from Dy. C.I.T., Central Cirde-31, Mumbai vide letter No. DCIT/c-31/S S 2009-10 dtd.12.01.2010 on 25.01.2010 along with copy of seized documents relating to Shri Vikram V Mehta, a son of Shri Vijay J Mehta, which were incriminating in nature. Since the provisions u/s 153C are attracted, proceedings u/s 153C were initiated for A.Y.2002-03 to A.Y.2008-09 by issue of Notice u/s153C of the I.T. Act, 1961 on 19.03.2010. 2.2. The assessee is a proprietor of M/s. Vikram Transport Services which is engaged in the business of transport. During the course of search proceedings, a statement on oath was recorded of Shri Vijay J. Mehta wherein he has surrendered the amount of ₹ 10 lakhs in the hands of Shri Vikram V. Mehta whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The detailed submissions of the assessee were transmitted to the AO for his remand report. The AO furnished the remand report vide letter dt. 8.2.2013. In his remand report, the AO stated that inspite of several opportunities given to the assessee, the assessee did not submit any concrete and satisfactory explanation nor he has furnished any evidence for verification as required. 3.1. When this remand report of the AO was confronted to the assessee, the assessee strongly submitted that the AO has sent his reply without doing any kind of enquiries and verifications from the appellant. Thereafter the assessee furnished a note on additions made u/s. 69C of the Act relating to various notings in pocket diary marked A1, A2 and A3. 3.2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd every findings of the AO. 6. Per contra, the Ld. Counsel could not advance anything new other than what has been advanced before the First Appellate authority. 7. We have given a thoughtful consideration to the findings of the AO and the findings of the Ld. CIT(A) qua additions. With the assistance of the Ld. Counsel, we have also gone through the relevant documentary evidences brought on record before us in the form of a paper book. It is an undisputed fact that the assessee has filed explanation to each and every entry recorded in the alleged pocket diary. The additions made by the AO are mechanical for example on page-10 of the seized diary marked as A-1, there is no transaction of ₹ 52,000/- on 3.8.2006 or otherwise. Thus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit and loss account towards freight charges were incurred in cash. The AO found that the ratio of cash payments and cheque payments is 80:20. As proper bills and vouchers were not produced, the AO disallowed 10% of the expenses claimed and made an addition of ₹ 15,49,773/- in assessment year 2007-08 and ₹ 24,60,075/- in A.Y 2008- 09. 9. The assessee carried the matter before the Ld. CIT(A). It was contended by the assessee that on the freight charges, the assessee has shown net profit of 6% which is a normal profit in the transport business. It was pointed out to the Ld. CIT(A) that the adhoc disallowance made by the AO is without pointing out any specific instance of any bogus or allowable business. It was further noticed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15,662,200 2. Freight charges paid 15,497,726 24,600,744 23,066,752 8,437,206 13,451,652 % 74.8% 83.9% 78.1% 74.7% 85.9% 3. Net Profit 1,242,682 1,395,952 1,578,400 386,790 751,869 % 6.0% 4.8% ..... X X X X Extracts X X X X X X X X Extracts X X X X
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