SILVERSTONE INFFRA PROJECTS PVT. LTD.,DURGAPUR vs. DCIT, CIRCLE-2, DURGAPUR, DURGAPUR

The assessee has raised the following grounds of appeal for the AY 2013-14:-

Brief facts of the case as culled out from records are that the assessee is a private limited company, engaged in the business as a transporter. Income of Rs. 73,80,250/- declared in the e-return filed for AY 2013-14 on 29-09-2013. Case selected for scrutiny through CASS followed by serving of valid notices u/s. 143(2) & 142(1) of the Income Tax Act, 1961 ( in short, referred in as the ‘Act’). The ld. AO considering the submissions filed by the assessee completed the assessment assessing income at Rs. 1,20,50,480/- after making various addition in the following manner:-

Aggrieved, the assessee preferred appeal before the ld. CIT(A) and partly succeeded.

Aggrieved, now the assessee is in appeal before this Tribunal against the addition(s)/disallowances sustained by the ld. CIT(A). 6. The Ld. Counsel for the assessee vehemently argued and filed written submissions and detailed voluminous paper book and also provided information about turnover/ expenditure details and Net Profit for the AYs 2010-11 to 2013-14 and prayed for deletion of additions/disallowances. 7. On the other hand, the ld. Departmental Representative vehemently argued supporting the orders of both the lower authorities. 8. We have heard the rival contentions and perused the record placed before us. 9. Ground no.1, it relates to disallowance of power & fuel expenses at Rs. 10,78,194/-, which was disallowed by the ld. AO @ 5% of the total claim of expenses at Rs. 2,15,63,895/-. The ld. CIT(A) after going through the details filed by the assessee held that expenses on power and fuel are proportionately high in certain months are not justified and specially in the month of March at Rs. 41,10,360/-, which was without any justification. We, however, on perusal of the details filed by the assessee notice that during AY 2013-14 fuel expenses are 14.45% of the total turnover Rs.149,240,464/-(AY 2013-14) whereas in immediately preceding FY 2012- 13 it was at 6.58%. However, it is also noted that freight expenses at 35.73% for the current year (2013-14) came down from at 46.02% in the

As far as major increase in the expenditure of power expenses is concerned, the assessee has been able to satisfy the considerable change. However, considering the fact that most of the expenses of power & fuel have been booked at the fag end and there considerable increase in the percentage of this expenditure for the AY 2010-11 onwards, we deem it proper to sustain the addition/disallowance @ 1% of the total claim of expenditure at Rs.2,15,63,895/-. Therefore, against the disallowance of Rs.10,78,194/-, a sum of Rs. 2,15,638/- is sustained and remaining disallowance of Rs.8,62,556/- is deleted. Ground no.1 raised by the assessee is partly allowed.

Ground no. 2, it relates to disallowance of repair & maintenance expenses at Rs. 1,29,741/-. Though it remains an undisputed fact that the assessee has filed complete ledger accounts of the expenditure incurred. Except an amount of Rs. 25,100/- incurred in cash remaining/balance amount has been paid through banking channel. We also note that percentage of repair and maintenance expenditure has scaled down as comparable to the preceding year. We, therefore, are of the considered view that disallowance of repair and maintenance expenses needs to be sustained only to the extent of Rs.25,100/-, which the assessee failed to explain. Thus, remaining addition of Rs.1,04,641/- is deleted. The assessee gets part relief. Ground no. 2 is partly allowed.

Ground no. 3, it relates to disallowance of unloading & chipping expenses computed @ 5% i.e at Rs. 23,98,090/- on the total amount of unloading & chipping expenses at Rs. 4,79,61,814/- incurred during the year. Reasons for the said disallowance was that 50% of the said expenditure was incurred in cash and substantial amount has been paid to 4. M/s. Silvertone Infra Proj. P.Ltd.

Ground no. 4 is general in nature, which needs no adjudication. In the result, the appeal of the assessee is partly allowed. 14. आदेश खुले �यायपीठ म� �दनांक 16-12-2022 को उ�घो�षत। Sd/- Sd/- (SONJOYSARMA) (MANISHBORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated :16-12-2022 5. M/s. Silvertone Infra Proj. P.Ltd.