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TMI Blog2017 (6) TMI 1075X X X X Extracts X X X X X X X X Extracts X X X X ..... by the AO to work out the transportation charges receivable is entirely wrong and does not base on accounting principles. Therefore, addition made by the AO and confirmed by the ld. CIT(A) needs to be deleted. Appeal filed by the assessee is allowed. - ITA No.1386/Kol/2016 - - - Dated:- 22-2-2017 - Shri S. S. Viswanethra Ravi, JM And Dr. A. L. Saini, AM Assessee by : Shri Sumit Ghosh, Advocate Revenue by : Sri Nicholas Murmu, JCIT ORDER Per Dr. Arjun Lal Saini, AM: The captioned appeal filed by the assessee pertaining to Assessment Year 2010-2011, is directed against the order passed by ld. CIT(A)-Durgapur, in Appeal No.143/CIT(A)/DGP/2012-13, dated 03.02.2016, which in turn arises out of an order passed by the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been shown in the same year, The appellant has stated that the credit entries were made to the extent of the subsidy received in the same year and for balance the same were added in the purchase which raised the cost of purchase, which clearly shows that the appellant was not anticipating 'any payment from Govt. of West Bengal, Food Supply Department. Once the appellant accepts that he was anticipating the same from Govt. of West Bengal, Food Supply Department, then the appellant contradict himself by not showing the receivables. As it got crystalized in the year itself which is in appeal, it should have been shown by the appellant in this year only. Therefore in the light of the above it is concluded that the appellant should have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, should have been replaced by ₹ 1,09,148.40, being transport rebate reimbursed to the said extent as per government norms, to bring the receivable amount, as rightly shown at ₹ 1,44,660.10, instead of the addition of ₹ 4,14,247.60 so made, may the same kindly be adjudicated accordingly. 3. FOR THAT the authorities below failed to appreciate that the above actual expenditure of ₹ 3,76,174/- incurred towards transportation on purchases of AAY (Antyaday Anna Yojana) wheat and rice is not fully reimbursable but to a limited extent in the form of transport rebate as per rate prescribed by the Govt.of West Bengal, Food and Supply Department, being in the instant case reimbursed only to the tune ofRs.1,09,148.40, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion] PARTICULARS As assessed by AO (As per page-4 Assessment Order As per our books Opening Balance as on 31.03.2009 5,43,679.15 5,43,679.15 Add: During the relevant period (Expenses incurred on account of transportation) 3,76,174.00 RECEIVABLE NIL Add: Arrear transport rebate for 2008-09 (already shown as receipt in P/L A/c) 1,47,222.00 RECEIVABLE NIL Add:Transport rebate reimburse as per rate Prescribed by Food Supply Dept. Govt. of WB X 1,09,148.40 Total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reimbursement as per rate prescribed by the Food and Supply Deptt. Govt of India at ₹ 1,09,148.40. Therefore, reconciliation made by the AO to arrive at closing balance as on 31.03.2010 at ₹ 5,58,907.70 is wrong. The assessee gets reimbursement from the Government of West Bengal @10 per quintal on account of transportation charges. Over and above, ₹ 10 per quintal if the assessee incurs transportation charge, the same would be on his own account and he cannot claim the same from the West Bengal Govt. on the prescribed rate of AAY Rice @ ₹ 10/- per quintal. That is, to say, if the assessee increases ₹ 15/- per quintal, expenditure of transportation charges, then (Rs.15-10) =Rs.5/- per quintal transportation cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod and has been debited to the profit and loss account at ₹ 3,76,174/- would not form part of receivable transportation charges. Besides, the transport rebate for A.Y 2008-09 shown by the assessee in profit and loss account would not be added because assesse has already shown as receipt in the profit and loss account. In addition to this, the AO forgot to add transport rebate reimbursable at ₹ 1,09,148.40. Therefore, reconciliation made by the AO to work out the transportation charges receivable is entirely wrong and does not base on accounting principles. Therefore, addition made by the AO and confirmed by the ld. CIT(A) needs to be deleted. 6.4. In the result, appeal filed by the assessee is allowed. Order pronounced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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