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TMI Blog2015 (10) TMI 1620X X X X Extracts X X X X X X X X Extracts X X X X ..... transport income has come down drastically and the gross profit has also increased substantially as was the case before the CIT(A) in the assessment year 2010-11. In absence of the same, the contention of the A.R. of the assessee cannot be accepted. We therefore, dismiss this ground of appeal. - Decided against assessee. - ITA No. 2883/Ahd/2011 - - - Dated:- 19-6-2015 - N. S. Saini, AM And S. S. Godara, JM,JJ. For the Appellant : Shri P F Jain For the Respondent : Shri Dinesh Singh, Sr.DR ORDER Per N S Saini, Accountant Member This is an appeal filed by the assessee against the order of the CIT (A)-VIII, Ahmedabad dated 4-7-2011. 2. Ground No.1 of the appeal reads as under:- 1. The Ld. CIT (A) has erred in la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, in the present year of appeal. The disallowance should be restricted to 1.11% of the expenditure of trip bhatta and diesel. 6. On the other hand, Departmental Representative supported the orders of the lower authorities. 7. We have heard the rival submissions, perused the orders of the lower authorities and materials available on record. The undisputed facts of the case are that the A.O. disallowed 10% out of the total expenditure incurred on diesel of ₹ 299.93 lacs and on trip and bhatta of ₹ 114.80 lacs by following his order of the earlier years and thereby made addition of ₹ 41,47,300/- to the income of the assessee. 8. On the appeal, the CIT (A) by following the order of the Tribunal in the case of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtionate increase in expenditure vis-a-vis expenditure incurred in the preceding years. Therefore, the Ld. CIT (A), considering the fact that input cost has gone up due to rise in diesel prices and other inflation cost, observed that current year operational results are found to be different from the preceding year. Taking into considering the fact that most of the freight rates were on rate contract basis which could not be increased commensurate with diesel expenses, the Ld. CIT (A) restricted the disallowance to the 1/3rd of the total disallowance of ₹ 56.52 lacs. Though the ld. AR relied upon a decision in the case of 77 TTJ (Ahd) TM 490, it has not been demonstrated as to how the facts of the cited case were parallel to the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the gross profit has also increased substantially as was the case before the CIT(A) in the assessment year 2010-11. In absence of the same, the contention of the A.R. of the assessee cannot be accepted. We therefore, dismiss this ground of appeal. 13. Ground No.2 of the appeal reads as under:- CIT (A) has erred in law and on facts in upholding the addition of ₹ 1,00,000/- on adhoc and estimated basis towards R.T.O. penalty without properly appreciating the facts of the appellant. 14. At the time of the hearing of the appeal, A.R. of the appellant has stated that he is not pressing this ground of appeal and hence the same is dismissed for want of prosecution. 15. In the result appeal of the assessee is dismissed. Orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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