9911796707
TMI Blog2016 (6) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... made on account of this. So we are of the view that the consistency should be maintained. In this view of this matter, we are inclined to reverse the orders of Authorities Below on the basis that assessee has been claiming these expenses consistently for the last many years and such expenses have not been disallowed. - Decided in favour of assessee Addition on account of sale of scraped / old and discarded trucks - Held that:- Assessee has reduced the WDV of the relevant block of vehicle from the sale price of the trucks. However, Authorities Below has treated the sale price as ₹ 50,000/- of the truck and the difference of ₹ 35,000/- has been treated as income of the assessee as income which is incorrect as per the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m of ₹ 95,74,607/- 2) That the Ld. C.I.T.(A) has further erred, likewise, in sustaining the addition of ₹ 10,50,000/- made to disclosed receipts of ₹ 1,95,000/- of sale of scraped/old and discarded losses. 2. First ground raised by assessee is as regard to that Ld. CIT(A) erred in sustaining the expenses of ₹ 2.50 lakh on account of en route expenses. 3. Facts in brief are that assessee is a Limited Company and engaged in the business of multi-model transport organization, freight forwarders, shippers and air freight bookers. During the year assessee has claimed an expenditure of ₹ 95,74,607/- towards repairing charges for culvert, road partitions, tree cutting, shifting of overhead electric wire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue. 5. Ld. AR before us submitted that Authorities Below have disallowed the aforesaid expenses only on estimate basis and without mentioning the relevant vouchers of the expenses as produced before the Authorities Below. Ld. AR also submitted that such en route expenses were also claimed in earlier years and no such disallowances were made for the same. Further, Ld. AR submitted that these are the expenses which have been incurred by the employees of assessee-company when they are carrying heavy project cargo and normally it is difficult to get the proper bills for these expenses. So these expenses are claimed only in terms of cash and stated that this issue may be decided on merit. On contrary, Ld. DR vehemently relied on the orders o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red in sustaining the addition of ₹ 10.50 lakh on account of sale of scraped / old and discarded trucks. During the years assessee has sold 30 trucks @ ₹ 15,000/- each to 27 persons at Guwahati but assessee failed to provide the addresses of the parties to whom trucks were sold. Therefore, AO doubted the genuineness for the sale price of the trucks i.e. ₹ 15,000/- each. The AO also observed that assessee was maintaining certain trucks having WDV at nil or Rs. ₹ 1/- in the books of accounts and those trucks were plying and given income to assessee. Accordingly, AO estimated the price per truck at ₹ 50,000/- and made addition of ₹ 10.50 lakh [30 trucks x ₹ 35,000/- (Rs. 50,000- 35,000.00)] to the tota ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 10. We have heard rival contentions and perused the materials available on record. From the aforesaid discussion, we find that assessee has sold 30 trucks @ 15,000/- each but AO disregarded the sale price of the trucks and estimated the sale price @ ₹ 50,000/- each on account of two reasons (1) the addresses and the confirmations from the buyers were not provided at the time of assessment proceedings. (2) There were certain trucks which are reflecting in the books of account of assessee either at nil WDV or ₹ 1/- only and which are plying and generating good income. From the facts of the case, we find that assessee has reduced the WDV of the relevant block of vehicle from the sale price of the trucks. However, Authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X
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