Giriraj Prasad Goyal, Tonk vs Ito Tonk, Tonk on 5 July, 2023
7.4 In the case of CIT vs. Swaminarayan Vijay Carry Trade (P.)Ltd. (2013) 84 CCH
311 (Guj) "it has been held that Business expenditure, Allowability of Freight and
transportation expenses. Assessee-company was engaged in business of
transport --AO having found that assessee had debited huge sum towards freight
and transportation expenses, and many of expenses were not authentic and also
not supported by evidences, disallowed 2 per cent of such expenses--CIT
(Appeals) deleted impugned disallowance made by AO holding that expenses
incurred were proved by duly supported vouchers with complete details of
expenses as also with name of payee, registration number of truck, etc and AO
had no evidence in making any disallowance out of freight and transportation
expenses--Tribunal upheld order of CIT (Appeals) holding that findings of
CIT(Appeals) could not be controverted by revenue--Held, both authorities have
thoroughly considered entire evidence presented before them--On being satisfied
that there was cogent material available on record to sustain say of assessee and
in absence of any reason to disallow such claim both of them concurrently held in
favour of assessee--No question of law much less any substantial question of law
arises
Assessee made payments to drivers towards their food and miscellaneous
expenses in cash and claimed deduction of such expenses--AO disallowed 10 per
cent of expenses--CIT (Appeals) deleted impugned disallowance made by AO
holding that AO had failed to bring on record any evidence suggesting that any
portion of such expenses was non-genuine or not for purpose of business--
Tribunal upheld order of CIT(A)holding that it was impossible for drivers to
maintain proper supporting evidences and vouchers in respect of various small
expenses incurred by them--Held, both authorities below have dealt with issue of
disallowance of 10 percent daily allowance given to drivers appropriately on basis
of substantive material available in support thereof--Tribunal was right in holding
that it is next to impossible to expect these drivers and helpers to maintain
supporting evidences and vouchers in respect of their food and miscellaneous
expenses--There was nothing on record to hold such expenses as non-genuine or
not for business--No question of law arises
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ITA Nos.