The Income Tax Appellate Tribunal (ITAT) Delhi Bench deleted the 5% disallowance made by the assessing officer out of repair and maintenance expenses claimed under the sanitation segment .
The assessee City Lifeline Travels Pvt Ltd filed the appeal against the order of Commissioner of Income Tax (Appeal) by challenging the 5% disallowance made by the assessing officer out of repair and maintenance expenses claimed under the sanitation segment.
During the scrutinizing the return of income of assessee, the Assessing Officer noticed that the assessee has incurred repair and maintenance expenses at Rs. 1,89,04,401.00.
After examining the details from the assesse, the AO noticed that the assessee has deducted tax at source on expenses of Rs. 20,22,126/- and no TDS has been deducted on balance expenses of Rs. 1,68,82,275/.
Before the tribunal, the counsel for assessee contended that expenses incurred for repair and maintenance of the sanitation segment was carried out using own vehicle.
Thus, the assessee has specifically explained that no expenses were incurred on hired vehicles and all the expenses have been incurred on owned vehicles.
Further, the assessee produced documents relating to the vouchers before the assessing officer even though the Assessing Officer neither expressed her appreciation nor dissatisfaction.
Counsel for Revenue supported the order of assessing officers .
It was observed by the tribunal that during the course of assessment proceedings itself the assessee has explained that repairs and maintenance expenses were incurred by it on its own vehicles and not on hired vehicles. Further the explanation of the assessee was supported by bills/vouchers.
The tribunal after reviewing the facts and submissions of the both parties, the two member bench of N.K. Billaiya, (Accountant Member) and Anubhav Sharma, (Judicial Member) deleted the 5% disallowance out of repair and maintenance expenses claimed under sanitation segment.
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