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TMI Blog2016 (8) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... e revenue read as follows :- "1. That the Ld.C.I.T.(A)-XXXVI,Kolkata erred in allowing Truck Running Expenses of Rs. 10,18,291/- as the principal expenditure of the assessee has been debited under the already debited truck running expenses which the material facts on record. 2. That the Ld.C.I.T.(A)-XXXVI,Kolkata erred in allowing Go-down Expenses of Rs. 7,42,641/- as this expenditure of the assessee not relatable to business since the assessee has no closing stock or businesses of any trade materials which is facts on record. 3. That the Ld.C.I.T.(A)-XXXVI,Kolkata erred in allowing Retainership Fees of Rs. 6,49,275/- as this expenditure of the assessee not relatable to the business of the assessee since assessee having transport bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O added the entire sum of Rs. 1,01,82,908/- to the total income of the assessee. However in an order u/s 154 of the Act dated 16.01.2012 this mistake was rectified and the disallowance was restricted to Rs. 10,18,291/-. 5. Before CIT(A) the assessee pointed out that the truck running expenses was incurred in respect of vehicles owned by the assessee which were 28 in number. The assessee pointed out that no expenses in respect of hiring vehicles were included in the truck running expenses. The assessee pointed out that out of total expenses booked under the head truck running expenses, expenses on fuel constituted about 85% to 90% and the remaining sum was wages paid to the drivers and kalasis and truck repairing expenses and other miscella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g and forwarding agent under an agreement dated 01.12.2004. As per the terms of the agreement, the assessee was to employ workmen and staff for maintaining the safety and security of the godown, storing, keeping and handing of the goods in safe condition in the godown and keeping proper accounts loading and unloading of the goods to and from the godown to different dealers. For performing the aforesaid job the assessee incurred expenses to the tune of Rs. 7,42,641/-. These expenses were booked under the head "Godown Expenses". The AO was of the view that since the assessee by the very nature of his business was required to have any stock of goods there was no necessity for having a Godown. Accordingly he disallowed the claim of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nomenclature "retainership fees" was used while accounting for the aforesaid payment. The real nature of the payment was in the nature of wages and had to be allowed as deduction. The CIT(A) accepted the contention of the assessee and allowed the claim of the assessee. 13. The contention of the revenue before us was that since the assessee was having its own vehicle there was no need for any retainer fee. In our view this contention of the revenue is not acceptable because the nature of this fee is wages and not any retainer fee paid in the process of transportation. We therefore do not find any reason to interfere with the order of CIT(A). Consequently ground no.3 raised by the revenue is dismissed. 14. As far as ground no.4 raised by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of loan AO treated the aforesaid sum as unexplained and added the same to the total income of the assessee. 18. CIT(A) however deleted the addition by observing as follows: "The facts are that as per the Balance Sheet (liability side) the amount of "loans and advances" taken as on 31.3.2008 was Rs. 20,44,340/- which increased to Rs. 28,98,340/- as on 31.3.2009. The incremental amount was Rs. 8,54,000/-. The loans & advances pertained to 3 (three) parties. In respect of 2 (two) parties the balance as on 31.3.2008 and 31.3.2009 were exactly same without any change. The only loan alc. was with the sister concern M/s TDC Warehousing Corporation and it was interest free. The loan transactions with the sister concern were all by cheque and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctual payment of rates and taxes. 23. Before us the learned counsel for the assessee drew our attention to the submissions filed before CIT(A) wherein in Annexure-D a complete proof of payment of rates and taxes were furnished before CIT(A). These documents are placed at page nos. 181 to 227 of the assessee's paper book. The break up of the expenditure is as follows :- Summary: Amount 1 TAX RENEWAL CHARGES 137,098.00 2 CERTIFICATE OF FITNESS 4,040.00 3 PERMIT RENEWAL FEES 144,261.00 4 Other Taxes 3,150.00 Total 288,549.00 24. The evidence recording actual payment have also been furnished before us. In the light of the evidence which was filed before CIT(A) we are of the view that the issue requires examination by the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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