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TMI Blog2015 (10) TMI 2368X X X X Extracts X X X X X X X X Extracts X X X X ..... wing relief of Rs. 50,000/- out of disallowance of crane operating expenses and wages. 3. granting relief of Rs. 15,220/- on account of telephone and vehicle expenses made by the AO. 4. allowing relief of Rs. 58,092/- out of disallowances of conveyance, telephone and advertisement and general expenses. 2.1 None appeared on the date of hearing on behalf of the assessee in spite of service of notice to the last known address of the assessee. However, the Bench decided to proceed in the matter ex-parte based on the materials available on record. 3.1 The ground no. 1 of the Revenue is regarding allowing depreciation at higher rates on hydraulic crane by the ld. CIT(A) which is not the commercial vehicle as held by the AO. 3.2 Brief facts o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the ld. CIT(A) who allowed the depreciation @ 30% by following observations at para 4.3 of her order. ''4.3 I have carefully perused the order of the AO and the submissions of the A.R. It is pertinent to note that the identical issue was decided by the CIT (A) in the case of partnership firm of the assessee in the case of M/s. Narayani Cranes in assessment year 2008-09 vide her order dated 21- 06-2011, ITA No. 457/10-11 wherein all the submissions were considered and the appeal was allowed in favour of the appellant on identical facts. It was held in the order that there was sufficient evidence to show that the truck crane was used on public road and so it was under the deeming provisions as a transport vehicle vide notification dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en filed by the assessee in support of its claim which includes RTO registration wherein the cranes are registered under the head 'Truck Crane' which shows that crane is mounted on vehicle. A certificate of the Distt. Transport Officer, stating the crane registered under Vehicle No. for which fitness is not required. The facts of the cases relied upon by the ld. DR are not the same as that of this particular in Third Member case, the ITAT, Pune Bench while deciding the case of Sanghvi Motors (P) Ltd. vs. DCIT, 110 ITD 1 (Pune) has allowed the higher depreciation on such vehicles. Accordingly, we do not find any infirmity in the order of the ld. CIT(A) and the solitary ground of the Revenue is dismissed. Thus respectfully following the decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT(A) who partly allowed this ground by granting a relief of Rs. 1.00 lacs as under:- ''5.3 I have carefully perused the order of the AO and the submission of the A.R. and do not concur with the submissions of the A.R. given the facts of the case and the observations of the AO regarding the same. The AO has observed that neither was the wage register maintained nor did the vouchers contain the names and address of the recipients of the wages. Therefore, in absence of any primary record, she could not possible have verified these payments. On perusal of the ledger account of crane operation expenses, it is seen that some payments for repairs and maintenance did not have supporting bills. Therefore, it is held that there was a possibility ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO observed that the assessee has claimed expenditure of Rs. 34,350/- on account of advertisement expenditure and Rs. 17,897/- on account of general expenses. The AO asked the assessee to submit the supporting evidence but the AO found that the assessee did not maintain proper bills and vouchers for such expense. The AO observed that petty cash payments have been made and the AO observed that such expenditures were unverifiable. The AO disallowed 20% of such expenditure which comes to Rs. 10,449/- and added the same to the income of the assessee. 5.3 As regards disallowance of conveyance expenditure of Rs. 2,75,019/- (inclusive of vehicle running expenses of Rs. 1,50,970/- , repairs and maintenance of Rs. 66,036/- and depreciation of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urnover has increased while the turnover has declined as compared to previous assessment year. Therefore, the disallowance of conveyance expense is restricted to 10% of Rs. 2,17,006/- depreciation has not been included in this disallowance as per the finding of the Hon'ble ITAT Jaipur in the case of Kailash Chand Gupta vs. DCIT 35 TW 36 (JP) . This results in a confirmation of disallowance from conveyance expenditure of Rs. 21,700/-. Similarly, the disallowance on account of telephone expenses is restricted to 10% o the claim resulting in a confirmation of disallowance of Rs. 14,340/-. Regarding the advertisement and general expenditure, it is seen that the percentage of expenses have decline since last year and so ad hoc disallowance o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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