1 ITA No.01/2017 HIGH COURT OF MADHYA PRADESH BENCH AT GWALIOR DB: SHEEL NAGU & S.A. DHARMADHIKARI, JJ ITA No.01/2017 Commissioner of Income Tax, City Centre, Gwalior Vs. Satyendra Singh Kushwah Whether reportable :- Yes /No For Appellant : Shri D.P Bhadauria, Advocate. .S. JUDGMENT (Delivered on this Day of 8th May, 2017) Per Justice S.A. Dharmadhikari Heard on question of admission. 2. This appeal is preferred by appellant under section 260-A of Income Tax Act, 1961 (for brevity 'Act') against order dated 08/08/2016 passed in I.T.A. No. 367/Agra/2013, whereby, Income Tax Appellate Tribunal, Bench Agra (for brevity 'ITAT') has reversed findings of Assessing Officer and Commissioner of Income Tax (Appeals), Gwalior in matter of addition of Rs. 80, 70, 861/- qua Assessment Year 2010-11. 3. assessee is engaged in business of material transportation services on basis of sub-contract with M/s. O & M Rosa Power Supply Company Limited for purpose of transportation of material from one destination to another. 2 ITA No.01/2017 4. assessee has filed income tax return for assessment year 2011-12 and declared total income as Rs. 21,81,760/-. During assessment, Assessing Officer made assessment of amount of Rs. 80,70,861/- on various heads and assessed total income of assessee at Rs. 1,02,52,620/-. 5. Assessing officer made aforesaid additions on following grounds:- i) Addition of Rs. 39,53,500/- on account of demurrage and warfage expenses; ii) Addition of Rs. 22,58,103/- on account of shortage of deduction; iii) Addition of Rs. 5,08,706/- on account of unloading charges; iv) Addition of Rs. 1,24,911/- on account of vehicle, maintenance expenses i.e. depreciation of vehicles; and v) Addition of Rs. 10,53,717/- on account of disallowance under section 40(a) (ia) of Act as TDS was not deducted by assessee under section 194 (I) of Act. 6. Being aggrieved by order of assessment, assessee preferred appeal before Commissioner of Income Tax (Appeals), Gwalior. order of assessment was confirmed by Commissioner of Income Tax (Appeals), Gwalior vide order dated 09/10/2013. 7. Being aggrieved, assessee filed appeal against order dated 09/10/2013 passed by Commissioner of 3 ITA No.01/2017 Income Tax (Appeals), Gwalior before ITAT and ITAT allowed appeal by deleting additions made by Assessing Officer vide impugned order dated 08/08/2016, hence, this appeal has been preferred before this Court. 8. Learned ITAT in order impugned has dealt with aforesaid issues exhaustively from para 6 onwards and has recorded separate reasons for deleting additions made by Assessing Officer. 9. It is case of appellant that ITAT has failed to consider discrepancies noted by Assessing Officer from return of assessee i.e. issue with regard to demurrage and warfage, ITAT deleted addition made by Assessing Officer holding that same was incurred by assessee wholly or exclusively for purpose of business. With regard to second issue i.e. shortage deduction, ITAT has deleted addition holding that deduction is not covered under penalty, but expenses has been occurred during ordinary course of business. With regard to third issue i.e. addition of unloading charges, ITAT has deleted addition stating that vouchers are self-contained, whereby, vehicle trips have been entered and no further discrepancy has been pointed out by Assessing Officer. With regard to addition on account of vehicle maintenance expenses, ITAT has deleted expenses holding that on perusal of copy of vehicle maintenance, ledger account filed in paper book most of expenses are on account of Tyres and Tubes of Trucks and assessee is involved in 4 ITA No.01/2017 business of material transportation services, therefore, expenses incurred on vehicle kept for business cannot be said to involve personal element. With regard to addition of disallowances under section 40 (a) (ia) of Act, TDS was not deducted by assessee under section 194 (I) of Act, ITAT has deleted addition holding that in present case how provisions of Section 194 (I) of Act has been made applicable since trucks hired by assessee is not anyone of components as provided under section 194 (I) of Act. Section 194 (I) of Act provides for deduction of Tax at source in case of payment towards rent. rent can be that of land, building, machinery, plant, equipments, furniture or fittings. In present case, provision of 194 (I) of Act is not applicable in view of fact that trucks hired by assessee is not anyone of component as provided under section 194 (I) of Act. Therefore, it was further held that addition is not permissible as provision of Section 40 (a)(ia) of Act cannot be invoked. 10. Having heard learned counsel for appellant on question of admission and on perusal of order dated 01/03/2013 passed by Assessing Officer and order dated 09/10/2013 passed by Commissioner of Income Tax (Appeals), Gwalior, it is seen that ITAT has allowed appeal by deleting additions which is based on material available on record and has also assigned specific reasons for doing so in para 6 onwards in impugned order. 5 ITA No.01/2017 findings of ITAT is based on due appreciation of documents and material available on record which cannot be found fault with. learned counsel for appellant is unable to point out any substantial question of law in instant appeal. 11. Accordingly, we do not find any substantial question of law in this appeal warranting interference by this Court and, therefore, this appeal being devoid of merit is hereby dismissed. No order as to costs. (SHEEL NAGU) (S.A. DHARMADHIKARI) JUDGE JUDGE Durgekar* Commissioner of Income-tax, Gwalior v. Satyendra Singh Kushwah