2016 (11) TMI 1033

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..... e in nature. In brief, the grievance of the assessee is that the learned Commissioner of Income-tax (Appeals) has erred in confirming the action of the Assessing Officer in rejecting the books of account and disallowance of Rs. 3,48,870 out of trip expenditure and Rs. 48,858 out of travelling expenditure. 3. Brief facts of the case are that the assessee-company at the relevant time was engaged in transportation business. It has filed its return of income electronically on September 12, 2009 declaring total income at Rs. 14,92,970. The assessee-company has shown operating turnover of Rs. 3,38,42,788. The learned Assessing Officer has examined the details of expenditure debited by the assessee. On the basis of test-check, he verified the exp .....

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..... produce any supporting evidence. Moreover, the assessee has no business connection with Goa. The learned Assessing Officer has disallowed the claim of the assessee to this extent. On appeal, the learned Commissioner of Income- tax (Appeals) confirmed the disallowance. 6. Before me, the learned counsel for the assessee submitted that the nature of expenditure under the head trip expenses is of such that the assessee could not maintain complete record. It is quite difficult for the drivers to keep the receipts of toll expenses, loading and unloading expenses where the labourers were hired at outstation places. Therefore, disallowance to the extent of 10 per cent. is on higher side. He further contended that in the assessment year 2007-08, th .....

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..... aintained by the assessee which had prevented him to deduce the true income of the assessee. Thus, the Assessing Officer has rejected the books of account. 9. As far as quantification of disallowance is concerned, the Assessing Officer has quantified the disallowance at 9 per cent. after pointing out specific defects in the details maintained by the assessee of the expenditure claimed. The learned Commissioner of Income-tax (Appeals) has examined the issue, and thereafter observed that out of trip expenditure, the addition is to be made to the extent of 10 per cent. On due consideration of the material on record, including the arguments of the assessee that in earlier assessment year, a lump sum disallowance at Rs. 1,00,000 was confirmed b .....

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