9911796707
TMI Blog2016 (1) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... iring of lorries, dealer in Petrol & diesel, transport contract, etc. and filed his return admitting total income of Rs..9,15,442/- along with agricultural income of Rs.. 25,000/-. The return was processed under section 143(1) of the Income Tax Act, 1961 ["Act" in short] and selected for scrutiny. In response to notice issued, AR of the assessee has produced the separate books of accounts maintained for all units for verification. After verification of books of accounts and considering the submissions of the assessee, the Assessing Officer has made various additions against which the assessee carried the matter in appeal before the ld. CIT(A). The ld. CIT(A), after considering the submissions of the assessee and also considering the materia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice of paying the sale proceeds to big land lords (Mirasudars) and they take more time to settle the outstanding payments. Therefore, he prayed that the addition may be deleted. 6. On the other hand, the ld. DR supported the orders of the authorities below. 7. We have heard both sides, perused the materials on record and gone through the orders of authorities below. The assessee has engaged in paddy and lorry business and in the balance sheet, the assessee has shown liability of Rs..49,09,487/-, out of which an amount of Rs..28,67,927/- was outstanding for more than a year. The assessee was asked to furnished confirmation letters in respect of the outstanding amounts. Out of 59 persons against whom the above amount is shown as outstandin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re dismissed as not pressed. 9. The next issue raised in the grounds of appeal of the assessee is relating to confirmation of disallowance of Rs..2 lakhs towards expenditure incurred in respect of paddy and lorry hiring business. Before the Assessing Officer, the assessee has claimed net loss of Rs..8,46,680/- from lorry business. The assessee has debited lorry maintenance expenses of Rs..7,79,841/-, car expenses of Rs..1,07,787/- and financial charges paid to SFL of Rs..1,50,002/-. The assessee has credited hire income of Rs..15,43,700/-. The Assessing Officer has observed that most of the expenditures claimed by the assessee are based on the payment slips given by the drivers except for the bills of diesel purchases, all other expenses c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estimated basis. We find that the basis for estimating the disallowance was not mentioned in the assessment order. Further, it is not disputed that such expenses are not at all incurred by the assessee. Incurring expenses in running the lorries such as sundry repairs and other recurring expenses are very common. Since the Assessing Officer has partially accepted the expenses incurred by the assessee and made disallowance, considering the nature of the business, we are of the firm view that the Assessing Officer was not justified in making disallowance on estimated basis in the present case. Accordingly, the disallowance of Rs..2,00,000/- made by the Assessing Officer is deleted. Thus, the ground raised by the assessee is allowed. 14. The l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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