9911796707
TMI Blog2017 (12) TMI 1478X X X X Extracts X X X X X X X X Extracts X X X X ..... of the opinion that there is no infirmity in the order passed by the ld. CIT(A). - Decided against revenue - ITA No. 268/VIZ/2016 - - - Dated:- 22-12-2017 - SHRI V. DURGA RAO, HON BLE JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, HON BLE ACCOUNTANT MEMBER For The Assessee : Shri G.V.N. Hari Advocate For The Department : Shri V. Appala Raju Sr.DR ORDER PER V. DURGA RAO, JUDICIAL MEMBER This appeal by the revenue is directed against the order of Commissioner of Income Tax (Appeals)-1, Visakhapatnam, dated 26/02/2016 for the Assessment Year 2011-12. 2. Facts of the case in brief are that the assessee is carrying in the business of C F agency and transport contracts, filed its return of income by declaring t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of C F which not required any vehicles like Lorries, Dumpers and Trailers. Our core business also includes transportation by hiring the vehicles and for this we have acquired the dumpers, trailers Lorries etc. The name of the firm is Srivalli shipping Transport itself indicates our business is C F agent Transportation activities. 4. The Assessing Officer after considering the above explanation given by the assessee has noted that as seen from the bills raised by the assessee, the same are composite bills covering various heads of items like documentation charges, stevedoring charges, handling charges, wharfage charges, demurrage charges, conveyance charges for customs inspection, liner agent charges, storage charges etc., apa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee on the ground that transportation business carried out by the assessee is an incidental to the main business. He strongly supported the order passed by the ld. CIT(A). 9. We have heard both the sides, perused the material available on record and orders of the authorities below. 10. The only issue involved in this appeal is whether assessee is eligible for higher depreciation or not. The case of the assessee is that assessee is carrying on the business of C F agency and also transportation business. Insofar as transportation business, the assessee has used Trailers, Dumpers Motor Lorries and submitted before the Assessing Officer that he is entitled for depreciation at 30%. The case of the Assessing Officer is that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AR furnished the details of the turnover for the previous year relevant for the Asst. Yr. 2011-12, as detailed below: Service Details Turnover Amount C H A Receipts 490,44,602 Cargo Handling receipts 843,17,989 Port Service receipts 430,66,123 Transport Receipts 2299,64,332 Reimbursement receipts 1511,23,536 5.3.2 I have carefully considered the above. Out of the gross business receipts of ₹ 55,75,16,582/-, the assessee received ₹ 22,99,64,332/- from its transport business. Thus, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n addition to his business of trading in timber. The order of assessment clearly indicates that the assessee was only in the business of trading in timber. We do not have the returns filed by the assessee before us. We do not have the constitution of the assessee company before us. There is no evidence to indicate that the assessee was in the business of hiring out motor lorries for running them to earn business income. The entire inference is drawn by CIT(A) only on the footing that the AO had treated ₹ 12,59,639 as part of total business income which is not determinative of the above test viz., whether the trucks were used in the transportation business as claimed by the assessee. For the aforestated reasons, we set aside the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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