9911796707
TMI Blog2021 (5) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... the year under consideration was filed by it on 17.03.2012 disclosing total income of Rs. 18,43,384/-. In the capital loss account filed along with the said return, a sum of Rs. 3,37,72,755/- was debited by the assessee on account of claim charges. In this regard, it was explained on behalf of the assessee before the AO during the course of assessment proceeding that it was in the business of transporting tea on behalf of the Tea Estates to the consignees and the transit loss in weight of consignments in the course of handling tea bags had to be borne by the assessee company. As noted by the AO, the expenditure claimed by the assessee on claim charges however was mainly supported only by self made vouchers. Keeping in view the same as well ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of claim charges was made by the AO in assessment year 2010-11, 2012-13 and 2013-14. He has submitted that disallowance out of claim charges however was made by the AO to the extent of 2% in the assessment completed u/s. 143(3) for assessment year 2014-15 but the same was deleted by the ld. CIT(A) vide his appellate order dated 10.07.2018. A copy of the said order is placed on record and perusal of the same shows that a similar disallowance made out of claim charges to the extent of 2% was deleted by the ld. CIT(A) for the following reasons given in the said order: "I have considered the submission of the appellant and perused the relevant assessment records. It appears that all the additions have been made on estimate basis and no materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ention that the disallowance of 10% is warranted in the facts of the case, which, being a pure factual issue, we reject the appeal at the admission stage itself." The jurisdictional ITAT in the case of ITO Wd-7(3), Kolkata vs M/s. Delite Properties Pvt. Ltd. in I.T.A. No. 261/Kol/2016, following the decision of the Hon'ble Madras High Court in the matter of CIT vs Lakshmi Vilas Bank Ltd. (supra) on the same issues has held "taking into consideration the entire aspect of the matter and the judgement cited above we are of the view that the order passed by the Ld CIT(A) confirming the order of the addition made by the AO on estimated basis without assigning any reason thereof is incorrect, erroneous and not sustainable in the eyes of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uantitatively when it was qualitatively found to be eligible for deduction. Keeping in view the ratio of the said decision of the Hon'ble Jurisdictional High Court and having regard to the facts of the case, I hold that the ad hoc disallowance made by the AO and confirmed by the ld. CIT(A) out of claim charges is not sustainable and deleting the same, I allow ground no. 1 of the assessee's appeal. 7. The issue raised in ground no. 2 relates to the disallowance of Rs. 1,53,818/- made by the AO and confirmed by the ld. CIT(A) out of repairs and maintenance. 8. During the course of assessment proceedings, the claim of the assessee of having incurred repairs and maintenance of Rs. 15,38,183/- was examined by the AO and on such examina ..... X X X X Extracts X X X X X X X X Extracts X X X X
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