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TMI Blog2023 (4) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... rs and came to the conclusion that the order passed by the AO is just on extrapolation and on presumption basis without any verification of details/information as filed by the assessee. CIT(A) has given some example of vehicles registration status on VAHAN portal which duly explained the nature of the vehicles. We have examined the same and found no infirmity or any deficiency in the observations of Ld. CIT(A). Merit in the contention of assessee that the addition has been made as unexplained expenditure u/s 69C of the Act which is incorrect and against the provision of Act as the said explanation deals with the disallowance and addition of expenditure the source whereof is not explained by the assessee. In the present case the sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee was called upon to furnish the bifurcation of said expenditure which was duly furnished by the assessee. The ld AO randomly checked and verified some of the hired vehicle from the website of VAHAN national registered e-portal, Ministry of Road, Transport Highways, Govt. of India and found that the assessee was hiring vehicle like motor cycle, Maxy Cab, tractors etc which are not possible to be used for transportation of goods. The AO also noted that some of the vehicles even not registered or were not appearing in the website. Accordingly the AO came to the conclusion that the expenses claimed by the assessee were not genuine and reliable and called upon the assessee to furnish the details/bills of these expenses which were not f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsport Highways, Govt. of India and categorically noted that all these vehicles were good carriers and not as observed by the AO. Finally the Ld. CIT(A) observed that all vehicles as referred to by the AO were quite active and duly registered on e-portal VAHAN and most of the vehicles were good carriers and in some cases data pertaining to the vehicles appeared to be not digitized and thus not available on the website. The Ld. CIT(A) also observed that despite all the evidences filed by the assessee, the AO has not bothered to verify the same and resorted to extrapolation and estimation of unexplained expenditure on the entire payments relating to 9068 vehicles. The Ld. CIT(A) while allowing the appeal of the assessee observed that ad hoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... restored to the file of the AO to frame new de novo assessment. 6. The Ld. A.R. of the assessee strongly opposed the contention of the Ld. D.R. by submitting that the assessee is a big goods transporter for which it hired vehicles from market. During the year approximately 9068 vehicles were hired by the assessee from market from the market for the purpose of its business . The Ld. A.R. submitted that the assessee has filed all the details relating to these vehicles with the AO and the AO after doing wrong verifying the vehicles details in the website VAHAN of Ministry of Road Transport Highways, came to the conclusion that some vehicle as noted in the assessment order were not goods transporters and were in fact motor cycles, tractors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 9068 vehicles which was totally fallacious and wrong and no extrapolation or estimation is permissible on the entire expenditure pointing out defects in one or two cases which was also wrong as has been negated by the Ld. CIT(A) in the appellate order. The Ld. A.R. also submitted that the disallowance has been made by the AO as unexplained expenditure u/s 69C of the Act which is also incorrect and against the provisions of Act as the provisions of Section 69C of the Act contemplates that where in any financial year an assessee has incurred any expenditure and he offers no explanation about the source of such expenditure or part thereof, or the explanation, if any, offered by him is not, in the opinion of the Assessing Officer, satisfactor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the vehicles as test checked by the AO were duly registered as goods carriers on the web portal of VAHAN, Ministry of Road Transport highways and in couple of cases the data were not available due to non-digitization of data. The Ld. CIT(A) examined the expenses claimed by the assessee comprising bills, vouchers and came to the conclusion that the order passed by the AO is just on extrapolation and on presumption basis without any verification of details/information as filed by the assessee. The Ld. CIT(A) has given some example of vehicles registration status on VAHAN portal which duly explained the nature of the vehicles. We have examined the same and found no infirmity or any deficiency in the observations of Ld. CIT(A). Moreover we f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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