INCOME TAX ACT, 1961

Section 37(1)

Business expenditure - Allowability - Disallowance of the growing charges and transportation charges -

Assessee was engaged in business of atchery and claimed deduction on account of expenses incurred on growing charges. AO called upon assessee to furnish the relevant details of growing charges such as name and address of the farmer, details of farm land, quantitative details of ready eggs, growing birds etc. However assessee failed to produce the said details required by AO and according to him, expenses of growing charges would reasonably be allowed to the extent of 5%. Assessee also failed to produce relevant details required by AO to verify the claim for other transport charges and AO noticed that assessee had claimed separately substantial amount on account of lorry freight, air transportation, railway freight, car hire charges, motor cycle expenses and conveyance expenses. Thus AO disallowed the entire other transport charges. Held: When Cross Objection filed by assessee was separately fixed before Tribunal for hearing, none appeared on behalf of assessee. As rightly pointed out by Revenue, both the issues relating to disallowance out of growing charges and transportation charges have already been decided by Tribunal vide its Order, dated 20-6-2018 passed while disposing of the appeal of Revenue holding that disallowance sustained by CIT(A) out of growing charges and transportation charges was fair and reasonable and there was no justifiable reason to interfere with the same. Accordingly cross Objection filed by assessee was dismissed.

REFERRED : ITO v. Ram Sagar Verma [I.T.A. No. 2091/Kol/2013, dt. 20-6-2018].

FAVOUR : Against the assessee.

A.Y. : 2008-09

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