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The Tax Publishers ABC India Ltd. v. ACIT [ITA No. 2078 (Kol) of 2013, dt. 11-5-2016] : 2016 TaxPub(DT) 2544 (Kol-Trib) Ad hoc disallowance on En-route expenses and on sale of scrap trucks *Facts:* Assessee in the business of multimodal transport activity and forwarding business had to pay in cash en route expenses arising out of survey, strengthening of culverts, road clearing etc. in the movement of heavy lift cargo. This could not be supported by bills 100% thus adhoc disallowances were made and sustained by Commissioner (Appeals). Similarly they had sold 30 scrap trucks at 15,000 a piece and offered the same as capital gains. The assessing officer since the name of the purchasers etc. could not be produced took adhoc sale price at 50,000 each truck and sustained an addition of 35,000 x 30 = 10.5 lakhs. This was upheld by the Commissioner (Appeals). Thus assessee went in appeal: Held in favour of the assessee that the assessee has been claiming the en route expenses similarly in a consistent manner and no disallowances were done in earlier years, which has to be consistently followed. The adhoc assumption of sale price at Rs. 50,000 and the addition made thereon for 35,000 a truck amounting to 10.50 lakhs also stands rejected.

The Tax Publishers

ABC India Ltd. v. ACIT [ITA No. 2078 (Kol) of 2013, dt. 11-5-2016] : 2016 TaxPub(DT) 2544 (Kol-Trib)

Ad hoc disallowance on En-route expenses and on sale of scrap trucks

Facts:

Assessee in the business of multimodal transport activity and forwarding business had to pay in cash en route expenses arising out of survey, strengthening of culverts, road clearing etc. in the movement of heavy lift cargo. This could not be supported by bills 100% thus adhoc disallowances were made and sustained by Commissioner (Appeals). Similarly they had sold 30 scrap trucks at 15,000 a piece and offered the same as capital gains. The assessing officer since the name of the purchasers etc. could not be produced took adhoc sale price at 50,000 each truck and sustained an addition of 35,000 x 30 = 10.5 lakhs. This was upheld by the Commissioner (Appeals). Thus assessee went in appeal:

Held in favour of the assessee that the assessee has been claiming the en route expenses similarly in a consistent manner and no disallowances were done in earlier years, which has to be consistently followed. The adhoc assumption of sale price at Rs. 50,000 and the addition made thereon for 35,000 a truck amounting to 10.50 lakhs also stands rejected.