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a) Lorry hire expenses charges Rs.6,71,450/-(Page 7 to 16 of P.B)
b) Diesel expenses Rs.3,79,938/- (Page 17 to 26 of P.B)
c) Repairs & maint. charges against transport work Rs.1,74,096/- (Page 27 to 31 of P.B)
d) Loading service charges Rs.4,01,766/- (Page 32 & 33 of P.B) It is also evident from copies of accounts of respective parties that major payments were made to them through banking channel and supporting evidences along with copies of account of creditors were also submitted before authorities below. In substance, gross receipts of transportation charges of Rs.18.04 lacs has been taxed as income but corresponding expenses to earn such income have been disallowed in full.
10. Documentary evidence filed in the paper book clearly shows that the regular books of accounts were maintained for M/s V.K. Transport. Transportation services relating to transport work were provided to various public Limited Company viz. M/s Crompton Greaves Limited and M/s. Dawat Foods Limited, and other concerns. Ledger accounts of various customers of M/s V.K. Transport are placed on record. Assessee does not own any transport vehicle and he carried out this transportation business by hiring trucks/Loory from other concerns for which charges are paid. Major expenses are towards brokerage, diesel expenses, loading services charges, Lorry charges and repairs & maintenance charges. In these given facts and circumstances, assessee having carried out the business of transport cannot be disputed. Since the Shri Vinod Kumar Jain assessee is carrying out business of providing transport service then certainly expenses incurred for carrying out business needs to be allowed.