Gopal Muwel Vs ITO (ITAT Indore)
ITAT Indore held that in absence of evidence, expense on fuel cost occurred on deployment of JCB’s on rent needs to be ascertained by way of proper and detailed empirical analysis. Accordingly, matter remanded back to the file of AO.
Facts- The assessee is involved in the business of renting of JCB Machineries. The total income of the Assessee was computed & assessed at Rs. 63,98,910/-. The total income as per the return of income filed was at Rs.6,12,710/-. The addition/variation in respect of issue involved was made at Rs.57,86,200/-. The case was selected for limited scrutiny to verify deductions from income from other sources. AO concluded that the assessee was requested to submit details regarding the expenses/deductions claimed u/s 57 to the tune of Rs. 57,86,200/-. However, the assessee has not submitted any details regarding the same to substantiate the genuineness of his claim of deduction u/s 57. Therefore, this amount of Rs. 57,86,200/- was proposed to be disallowed and added back to the total income of the assessee.
Conclusion- Held that this tribunal simultaneously in the peculiar facts & circumstances of the case as analysed aforesaid & in the interest of justice so that litigation is put to rest is of the considered opinion that both the Ld. AR & the Ld. DR are adidem that some expenses on fuel cost must have occurred as the contract was all inclusive on the deployment of JCB’s to “Ultra tech Ltd.” hence it would be just, fair & convenient that requisite fuel expense/cost be first ascertained as & by way of a proper & detailed empirical analysis basis that fuel cost be determined. The necessary & due benefit of it be given to assessee if found justifiable/eligible. We clarify empirical analysis means studing & interpreting information based on real world data, direct observation & measurable evidence, rather than just the theories or logic to draw conclusions, identity patterns & test hypotheses. Thus, the impugned order is set aside as & by way of remand back to the file of Ld. AO.
