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TMI Blog2019 (10) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... leaded that the impugned issues require re-examination afresh, which is not opposed by the Ld. DR. We deem it fit to remit these issues back to the AO for a fresh examination. The assessee shall place all the materials in its support before the AO and comply to the AO s requirements as per law. AO is free to conduct appropriate enquiry as deemed fit, but he shall furnish adequate opportunity to the assesssee on the material etc to be used against it and decide the matter in accordance with law. Assessee s appeal is treated as partly allowed for statistical purposes. - I.T.A. No.2295/Chny/2017 - - - Dated:- 11-2-2019 - Shri N.R.S. Ganesan, Judicial Member And Shri S. Jayaraman, Accountant Member For the Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.2 CIT (A) erred in confirming the above illegality for the reason that assessee has not raised it as grounds of appeal , while Ground No.1 questions the above illegality and he further erred in not considering the Board s Instructions and case laws brought to his notice. WITHOUT PREJUDICE TO THE ABOVE: 2. CIT (A) erred in confirming disallowance made u/s 40A(3)of ₹ 2,90,000 paid to truck drivers who insist on cash payment as they do not have bank A/c in the place where cargo is delivered and due to business exigencies such lorry hire etc., have to be paid on the spot. He erred in relying on Rule 6ABA which refers to aggregate average advances made by rural bra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing and handling expenses. The assessee furnished reconciliation of Service tax return and ITR for the Financial Year 2013-14 which was accepted. As regards the difference in Tax credit and receipts admitted in lncome-tax Return and 26AS, the assessee was asked to furnish the documentary evidences for the differences along with the copy of ledger accounts, bills and bank statements vide letter dated 24.10.2016. The assessee furnished a write-up on the accounting procedures in which it was submitted as under: ..our scope of service is, on behalf of our customers, to get the clearance from Customs and Port for the export/import consignments, coordinate with various other service providers.... The mone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssues on which the assessment was to bescrutinized by him and therefore, he has not travelled beyond the mandate of the scrutiny.With reference to the Ld. AR s contention that the credit in the profit loss account under the head shipping expenses recovery and the debit in the profit loss account under the head shipping and handling expenses shipping expenses recovered (sic) are not assessee s income and expenditure do not merit as these transactions have been entered in the profit loss account and certified by the Chartered Accountant to be the assessee s transaction which are material for determining its profit loss. When the receipts and expenditures are brought within the scope of the profit loss account, naturally the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling under tax credit (and receipts) in ITR is less than tax credit in 26AS . While doing so, he has made the impugned disallowances and hence the AO s action is well within his jurisdiction. However, the assessee pleaded that the impugned issues require re-examination afresh, which is not opposed by the Ld. DR. In the facts and circumstances, we deem it fit to remit these issues back to the AO for a fresh examination. The assessee shall place all the materials in its support before the AO and comply to the AO s requirements as per law. The A O is free to conduct appropriate enquiry as deemed fit, but he shall furnish adequate opportunity to the assesssee on the material etc to be used against it and decide the matter in accordance with la ..... X X X X Extracts X X X X X X X X Extracts X X X X
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