ITO, Ward - 7(2), Kolkata, Kolkata v. M/s. Time Travels Pvt. Ltd., Kolkata

ITA 2003/KOL/2010 | 2004-2005
Pronouncement Date: 09-09-2011 | Result: Dismissed

Appeal Details

RSA Number 200323514 RSA 2010
Assessee PAN AAACT9369A
Bench Kolkata
Appeal Number ITA 2003/KOL/2010
Duration Of Justice 10 month(s) 5 day(s)
Appellant ITO, Ward - 7(2), Kolkata, Kolkata
Respondent M/s. Time Travels Pvt. Ltd., Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 09-09-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 09-09-2011
Assessment Year 2004-2005
Appeal Filed On 03-11-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : KOLKATA [ . . . . . .. . ! ! ! ! ] [BEFORE HONBLE SHRI S.V. MEHROTRA AM & HONBLE SHRI MAHAVIR SINGH JM !' !' !' !' / I.T.A NO. 2003/KOL/2010 #$ %& #$ %& #$ %& #$ %&/ // / ASSESSMENT YEAR : 2004-05 INCOME TAX OFFICER/WARD-7(2) -VS.- M/S. TIME TRAVELS PRIVATE LIMITED KOLKATA. KOLKATA [PAN : AAACT 9369 A] [ () () () () /APPELLANT ] ]] ] [ + () + () + () + ()/ // / RESPONDENT ] ]] ] () () () () / FOR THE APPELLANT : SHRI S. K. ROY + () + () + () + () / FOR THE RESPONDENT : SHRI A. K. TIBREWAL - /ORDER . . . . . .. . PER S. V. MEHROTRA A. M. THE DEPARTMENT HAS PREFERRED THIS APPEAL FOR ASSES SMENT YEAR 2004-05 AGAINST THE ORDER OF LD. CIT(A)-VIII KOLKATA DATED 30.08.2010. 2. THE ASSESSEE-COMPANY IN THE RELEVANT ASSESSMENT YEAR FILED ITS RETURN OF INCOME DISCLOSING NET TAXABLE INCOME OF RS.2 53 610/-. THE ASSESSMENT WAS COMPLETED UNDER SECTION 144 AT RS.34 24 692/- INTER ALIA AFTER MAKING FOLLOWI NG DISALLOWANCES :- I) TOWARDS PRIOR PERIOD EXPENSES : RS. 56 000/- II) TOWARDS EXCESS DEDUCTION CLAIMED -- TIME CAB RUNNING & MAINTENANCE : RS.8 79 236/- WHILE PARTLY ALLOWING ASSESSEES APPEAL LD. CIT(A) DELETED THE AFOREMENTIONED DISALLOWANCES. 3. BEING AGGRIEVED THE DEPARTMENT IS IN APPEAL BEFO RE US AND HAS TAKEN FOLLOWING GROUNDS OF APPEAL :- (1) THAT THE LD. CIT(A)-VIII KOLKATA HAS ERRED IN FACTS IN DELETING THE DISALLOWANCE OF RS.56 000/- MADE BY THE AO ON THE G ROUND THAT DURING THE PREVIOUS YEAR UNDER CONSIDERATION THE ASSESSEE COMPANY MADE A PAYMENT OF PROVIDENT FUND OF RS.56 000/- WHICH WAS RELATED TO EARLIER ITA NO. 2003/KOL/2010 2 YEARS IN SO FAR AS SUCH PAYMENT WAS NOT MADE FOR AN Y CONTRIBUTION TO ANY PROVIDENT FUND FOR THE WELFARE OF EMPLOYEES. (2) THAT THE LD. CIT(A)-VIII KOLKATA HAS ERRED IN FACTS IN DELETING THE DISALLOWANCE OF RS.8 79 236/- MADE BY THE AO OUT OF EXPENSES DEBITED IN THE P&L A/C. UNDER THE HEAD OF RUNNING AND MAIN TENANCE OF TIME CABS IN SO FAR AS THE ASSESSEE COULD NOT SUBSTANTI ATE HIS CLAIMS DURING THE ASSESSMENT AND REMAND PROCEEDINGS. 4. BRIEF FACTS APROPOS GROUND NO.1 ARE THAT THE ASS ESSEE CLAIMED AN EXPENSE OF RS.56 000/- TOWARDS ASSESSMENT DEMAND FOR EMPLOYEES PROVIDENT F UND. ASSESSING OFFICER DISALLOWED THIS AMOUNT OBSERVING THAT THE AMOUNT RELATED TO EARLIER YEARS. BEFORE LD. CIT(A) IT WAS POINTED OUT THAT THE PAYMENT WAS RELATED TO EARLIER PERIOD VIZ. 1997-98 & 1998-2003. IT WAS CLAIMED THAT THIS AMOUNT WAS PAID FOR SHORT PAYMENT OF EMPLOYERS CON TRIBUTION DURING THE ABOVE PERIOD. IT WAS SUBMITTED THAT THE PAYMENT WAS MADE IN THIS YEAR AN D WAS ALLOWABLE UNDER SECTION 43B. LD. CIT(A) HAS OBSERVED THAT IN THE REMAND REPORT ASSES SING OFFICER SUBMITTED THAT THIS ADDITIONAL PAYMENT BY ASSESSEE WAS ATTRIBUTABLE TO ENHANCEMENT IN THE PROVIDENT FUND ADMINISTRATION CHARGES @ 1.10% WITH EFFECT FROM 04.08.1998. LD. CI T(A) ALLOWED THE ASSESSEES CLAIM IN VIEW OF SECTION 43B(B) READ WITH PROVISO THERETO OBSERVI NG THAT THE PAYMENT FOR STATUTORY LIABILITY IS ALLOWABLE IN THE PREVIOUS YEAR IN WHICH SUCH LIABIL ITY IS ACTUALLY PAID. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND HAVE PERUSED THE RECORDS OF THE APPEAL. THE FACTS ARE NOT DISPUTED. IN THE REMA ND REPORT CONTAINED AT PAGE 24 OF THE PAPER BOOK ASSESSING OFFICER HAS INTER ALIA OBSERVED T HAT THE IMPUGNED PAYMENT WAS ATTRIBUTABLE TO THE ENHANCEMENT IN THE RATE OF PROVIDENT FUND ADMIN ISTRATION CHARGES @ 1.10% ON THE BASIS OF ORDER DATED 29.09.2003 PASSED BY ACCOUNTS OFFICER EMPLOYEES PROVIDENT FUND THE PROVIDENT FUND COMMISSIONER SALT LAKE KOLKATA-700 091. TH E ASSESSEE HAS ANNEXED THE CHALLANS AT PAGES 32 & 33 OF THE PAPER BOOK TO DEMONSTRATE THAT THE P AYMENT WAS MADE BY IT. SINCE THE PAYMENT RELATES TO ITS STATUTORY LIABILITY AS PER ORDER DAT ED 29.09.2003 (ASSESSMENT YEAR 2004-05) IT IS ALLOWABLE IN THE YEAR IN WHICH PAYMENT WAS MADE AS PER PROVISIONS OF SECTION 43B OF THE ACT. THEREFORE WE DO NOT FIND ANY REASON TO INTERFERE W ITH THE ORDER OF LD. CIT(A) ON THIS COUNT. IN THE RESULT THIS GROUND IS DISMISSED. 6. BRIEF FACTS APROPOS GROUND NO.2 ARE THAT THE ASS ESSING OFFICER NOTICED THAT IN THE BUSINESS ACTIVITY RELATING TO TIME CAB AN AMOUNT OF RS.15 0 9 940/- WAS CREDITED TOWARDS RECEIPTS FROM ITA NO. 2003/KOL/2010 3 OPERATION OF SUCH CABS AND AN AMOUNT OF RS.34 65 11 8/- WAS DEBITED AS EXPENSE INCURRED TOWARDS RUNNING AND MAINTENANCE OF THESE CABS. THUS IN EF FECT A LOSS OF RS.19 55 178/- WAS REPORTED IN THE BUSINESS OF OPERATION OF TIME CABS. ASSESSING O FFICER REQUIRED THE ASSESSEE TO FURNISH VEHICLE RECEIPTS EARNED AND EXPENSES INCURRED SO AS TO RELA TE THE RECEIPTS WITH THE EXPENSES. HOWEVER ASSESSEE FAILED TO FURNISH THE CAB-WISE DETAILS. AS SESSING OFFICER OBSERVED THAT IN THE IMMEDIATELY PRECEDING YEAR I.E. FINANCIAL YEAR 2002-03 ASSESSE ES LOSS WAS 29% OVER RECEIPTS WHEREAS DURING THE CURRENT YEAR IT WAS 129% OF RECEIPTS. HE OBSERV ED THAT THIS ABNORMAL RISE IN EXTENT OF LOSS WAS QUITE UNNATURAL WHEN NATURE OF EXPENSE INCURRED DUR ING BOTH THE YEARS WAS SAME. ASSESSING OFFICER EXAMINED THE DETAILS OF EXPENSES REFLECTED AGAINST RUNNING AND MAINTENANCE OF TIME CABS AND NOTED THAT THE FOLLOWING EXPENSES WERE MA NDATORY IRRESPECTIVE OF WHETHER THERE WAS ACTUALLY ANY RUNNING OF CARS OR NOT :- CONVEYANCE EXPENDITURE DRESS AND UNIFORM GARAGE RENT INSURANCE CHARGES ROAD TAX & PERMIT SECURITY CHAR GES AND TELEPHONE CHARGES. HOWEVER HE FURTHER OBSERVED THAT THE FOLLOWING EXP ENSES WERE DIRECTLY RELATED TO ACTUAL RUNNING OF THE VEHICLES AND THEREFORE THEY WERE DIRECTLY PROPORTIONAL TO ACTUAL USAGE OF VEHICLES :- I) FUEL & LUBRICANT II) PARKING FEE III) REPAIRING CHARGES IV) CAB PILOT CO-OPERATIVE PAYMENT V) CAR HIRE CHARGES VI) GARAGE EXPENSES SINCE THE ASSESSEE DID NOT FILE ANY EVIDENCE AND EX PLANATION ASSESSING OFFICER COMPUTED THESE EXPENSES IN THE SAME PROPORTION TO GROSS RECEIPTS F ROM THIS ACTIVITY AS THAT DISCLOSED IN THE ACCOUNTS FOR THE FINANCIAL YEAR 2002-03. HIS COMPUT ATION IN THIS REGARD IS REPRODUCED BELOW :- NATURE OF EXPENSE PROPORTION OF EXPENSE TO GROSS RECEIPTS OF RS.35 30 071/- DURING F.Y. 2002-03 EXPENSE CALCULATED IN THE SAME PROPORTION TO GROSS RECEIPTS OF RS.15 09 940/- THIS YEAR. FUEL & LUBRICANT 0.337 5 08 038 PARKING FEE 0.0087 13 097 REPAIRING CHARGES 0.211 2 79 865 (NOTE BELOW) CAB PILOT CO-OP. PAYMENT 0.187 2 82 944 CAR HIRE CHARGES 0.266 4 01 298 ITA NO. 2003/KOL/2010 4 GARAGE EXPENSES 0.027 40 688 TOTAL 15 25 930 [*NOTE - EXPENSE UNDER THIS HEAD IN THE PROPORTION OF 0.21 1 TO GROSS RECEIPTS COMES TO RS.3 18 597/- . HOWEVER ASSESSEE HAS DEBI TED ONLY RS.2 79 865/- UNDER THIS HEAD.] HE THEREFORE ALLOWED RS.15 25 930/- UNDER THE ABO VE HEAD OF EXPENSES AS AGAINST RS.24 05 166/- CLAIMED BY THE ASSESSEE. HE ACCORDINGLY MADE DISA LLOWANCE OF RS.8 79 236/-. BEFORE LD. CIT(A) ASSESSEE SPECIFICALLY POINTED OUT THE VARIATION IN PERCENTAGE UNDER VARIOUS HEADS OF EXPENSES FOR FINANCIAL YEAR ENDING 31.03.2003 & 31.03.2004. HIS SUBMISSIONS HAVE BEEN NOTED BY LD. CIT(A) AT PARA 7.2 OF HIS ORDER. LD. CIT(A) CALLED FOR REM AND REPORT FROM THE ASSESSING OFFICER AND CONTENTS OF THE REMAND REPORT ARE GIVEN AT PARA 7.3 OF HIS ORDER. ASSESSEES REPLY TO THE REMAND REPORT HAS BEEN REPRODUCED AT PARA 7.4 OF HIS ORDER . LD. CIT(A) DELETED THE ADDITION OF RS.8 79 236/- INTER ALIA OBSERVING AS UNDER :- ON THIS ISSUE FIRST OF ALL I AM OF THE OPINION THA T IT IS NOT JUSTIFIED TO REJECT THE DETAILS OF EXPENSES OF RUNNING. AND MAIN TENANCE OF TIME CABS ON THE GROUND THAT THE ASSESSEE HAS NOT MAINTAINED VEHICLE -WISE DETAILS OF RECEIPT AND EXPENSES. THE ASSESSEE HAS CATERED TO A LARGE NUMBE R OF CUSTOMERS DURING THE PREVIOUS YEAR-FOR WHICH EQUALLY LARGE NUMBER OF VEH ICLES - BOTH SELF-OWNED AND HIRED FROM OUTSIDE HAVE BEEN USED. IT WOULD HAVE BE EN IMPRACTICAL FOR THE ASSESSEE-.TO MAINTAIN VEHICLE-WISE LOG-BOOK OF RECE IPTS AND PAYMENTS. THE ASSESSEE HAS STATED THAT THEY MAINTAINED JOB CARDS FOR THE TRIPS CARRIED ON BY TIME CABS FOR THEIR CLIENTS. THEREFORE THE VERY BASIS OF REJECTING THE CLAIM OF THESE EXPENSES USED BY THE A.O. IS WRONG. THE ASSESSEE HA S CLAIMED THAT ALL THE EXPENSES FIXED OR VARIABLE DEBITED UNDER THE HEAD RUNNING AND MAINTENANCE - OF TIME CABS ARE FULLY VOUCHED. THE ASSESSEE HAS GIVE N THE .LEDGER ACCOUNTS OF ALL THESE EXPENSES AND ALSO CERTAIN SAMPLE BILLS FOR TH E SAME. I FIND THAT THE A.O. HAS NOT BEEN ABLE TO FIND ANY DEFECT IN THESE BILLS AND VOUCHERS. HE HAS MERELY POINTED OUT THAT SOME OF THE EXPENSES SUCH AS FUEL LUBRICANT REPAIRING CHARGES CAR HIRE CHARGES ARE MOSTLY PAID IN CASH. HOWEVER I FEEL THAT JUST BECAUSE THESE EXPENSES ARE PAID IN CASH THEY CANNOT BE DISBELIEVE D. THE NATURE OF THESE EXPENSES IS SUCH THAT THEY ARE SPENT IN SMALL AMOUN TS AT DIFFERENT LOCATIONS BY THE DRIVERS AND HAVE TO BE PAID IN CASH. 7. LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE OR DER OF ASSESSING OFFICER. 8. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND HAVE PERUSED THE RECORDS OF THE APPEAL. AS NOTED EARLIER ASSESSEE HAD NOT FURN ISHED ANY EXPLANATION BEFORE THE ASSESSING OFFICER. HOWEVER BEFORE LD. CIT(A) ASSESSEE HAD F ILED DETAILED EXPLANATION AND HAD ALSO FURNISHED SAMPLE BILLS AND VOUCHERS. LD. CIT(A) CAL LED FOR A REMAND REPORT FROM ASSESSING ITA NO. 2003/KOL/2010 5 OFFICER. IN THE REMAND REPORT IN WHICH ASSESSING OF FICER PRIMARILY GAVE FOLLOWING TWO REASONS FOR NOT ACCEPTING THE ASSESSEES EXPLANATION :- (A) ASSESSEE FAILED TO SUBSTANTIATE THE EXTENT IN I NCREASE IN THE PRICE OF DIESEL/PETROL AND DIVERS SALARY WITH THE PERCENTAGE OF INCREASE IN T HE VARIABLE EXPENSES. (B) ASSESSEE FAILED TO PROVIDE ANY BIFURCATION IN R EGARD TO ITS CLAIM THAT TIME CABS WERE GIVEN ON HIRE ON RENT AS WELL AS FREE OF SERVICE TO THE CUSTOMERS WHO PURCHASED AIR TICKETS FROM THE COMPANY. IN THIS REGARD HE FURTHE R OBSERVED THAT THE GROSS COMMISSION RECEIVED ON ACCOUNT OF BOOKING OF SIR TI CKETS DECREASED AS COMPARED TO EARLIER YEAR. ASSESSING OFFICER WANTED THE ASSESSEE TO FURNISH CA B-WISE DETAILS BUT ASSESSEE WAS ONLY MAINTAINING THE JOB CARDS IN RESPECT OF VARIOUS CAB S. UNDER SUCH CIRCUMSTANCES LD. CIT(A) OBSERVED THAT VERY BASIS OF REJECTING THE CLAIM OF THESE EXPENSES USED BY THE ASSESSING OFFICER WAS WRONG. THE ASSESSEE HAD GIVEN DETAILS OF FIXED EXPENSES AND VARIOUS EXPENSES SEPARATELY WHICH HAVE NOT BEEN DOUBTED. IT WAS EXPLAINED THAT OUT OF THIS EXPENDITURE MAXIMUM INCREASE WAS IN ROAD TAX AND PERMIT CHARGES WHICH WERE GOVERNMEN T PAYMENTS. 8.1 SIMILARLY IN RESPECT OF INSURANCE CHARGES IT WAS POINTED OUT THAT THE SAME WERE DULY SUPPORTED BY EVIDENCES. THE ASSESSEE HAD ALSO POINT ED OUT THAT EACH ITEM OF EXPENDITURE INCLUDED FOR THE RUNNING AND MAINTENANCE EXPENSES WERE DULY SUPPORTED BY BILLS AND VOUCHERS AND THE ASSESSEE WAS IN A POSITION TO PRODUCE THE SAME. THE ASSESSEE HAD ALSO POINTED OUT THAT VARIABLE EXPENSES REDUCED BY 35.84% AS AGAINST REDUCTION OF GROSS REVENUE RECEIVED ON CAR RENTALS OF 57.23%. IT WAS FURTHER EXPLAINED THAT EXPENDITURE F OR FUEL AND LUBRICANT CAB PILOT REMUNERATION AND CAR HIRE CHARGES INCREASED DURING THE YEAR BUT ASSESSEE DID NOT INCREASE THE CAR HIRE CHARGES PROPORTIONATE TO INCREASE IN VARIABLE COST. THE ASS ESSEE HAD ALSO EXPLAINED THAT THE VEHICLES OF TIME CAB WERE GIVEN ON HIRE ON RENT AS WELL AS FREE OF SERVICE TO THE CUSTOMERS WHO PURCHASED AIR TICKET FROM THE COMPANY. HOWEVER DURING THE REMAND PROCEEDINGS ASSESSEE COULD NOT BIFURCATE BETWEEN THE CARS RUNNING ON HIRE ON RENT AND CARS G IVEN ON FREE OF SERVICE TO THE CUSTOMERS. HE ALSO POINTED OUT THAT FROM THE PROFIT & LOSS ACCOUN T IT WAS SEEN THAT THE GROSS COMMISSION RECEIVED ON ACCOUNT OF BOOKING OF AIR TICKETS WERE DECREASED AS COMPARED TO LAST YEAR. HOWEVER ASSESSEE HAD EXPLAINED THAT THE VOLUME OF BUSINESS AND NUMBE R OF TICKETS SOLD HAD INCREASED THE REVENUE BY WAY OF DOMESTIC BOOKING HAD DECREASED AS NO COMM ISSION WAS RECEIVED FROM THE LOW COST ITA NO. 2003/KOL/2010 6 AIRLINES AND THERE HAD BEEN SHIFT IN BUSINESS OF HI GH COST AIRLINES TO LOW COST AIRLINES. THE ASSESSEE HAD GIVEN HIS EXPLANATION IN REGARD TO DIFFERENT TY PE OF EXPENSES AS UNDER :- GARAGE EXPENSES : GARAGE EXPENSES HAS BEEN PAID TO VARIOUS PERS ONS FOR CAR CLEANING AND MAINTENANCE. IT IS A FIXED KIND OF EXP ENSES DEPENDING UPON THE NOS. OF CARS OWNED BY A PERSON. THE CARS HAVE TO BE CLEA NED AND MAINTAINED DAY TO DAY BASIS IRRESPECTIVE OF ITS RUNNING AND THUS BEAR S NO RELATIONS WITH CAR RENTALS. THUS APPORTIONMENT OF THE GARAGE EXPENSES ON THE BA SIS OF REVENUE GENERATED IS NOT FAIR AND CORRECT. THE COMPLETE DETAIL OF GARAGE EXPENSES IS ENCLOSED HEREWITH. CAR HIRE CHARGES . CARS TAKEN ON HIRE WERE UTILIZED MOSTLY TO CATER TO FREE TRIPS. HOWEVER THE SAME HAS ALSO REDUCED THOUGH THERE HAS BEEN INCREASE IN TRAVELLING AND ALSO USE OF OWNED CARS FOR FREE TRIPS DUE LOW U TILIZATION OF SELF OWNED CARS FOR PAID TRIPS. AS THE CARS ON HIRE WERE MOSTLY USED FO R FREE TRIPS AND DID NOT GENERATE REVENUE FOR COMPANY AND THE INSTANCES OF USE OF CAR S TAKEN ON HIRE FOR EARNING REVENUE FOR THE COMPANY BEING VERY MINIMUM LINKING OF THE CAR HIRE CHARGES WITH CAR REVENUE AND ITS APPORTIONMENT IS NOT FAIR AND CORRECT. AS SUCH BASED ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE DISALL OWANCE OF CAR HIRE CHARGES UNDER THIS CLASSIFICATION OF EXPENSES AMOUNTING TO RS.3 39 807/- IS WHOLLY UNJUSTIFIED. CABS-PILOTS CO-OP PAYMENT : DEPENDS UPON THE NOS. OF CAB DRIVERS EMPLOYED VIS--VIS CARS OWNED BY A PERSON AND MONTHLY SALARI ES ARE FIXED. HOWEVER OVERTIME EXPENSES IS VARIABLE. THERE HAS BEEN DROP IN SALARY PAYMENT TO THE CAB- PILOTS BECAUSE OF REDUCTION IN NOS. OF CAB PILOTS F ROM 13 PERSONS IN PREVIOUS YEAR TO 9 CAB DRIVERS IN THE YEAR UNDER ASSESSMENT AND A LSO CONSIDERABLY LESS OVERTIME PAYMENT. THE FIXED PORTION OF SALARY OF CAB DRIVERS HAS NO DIRECT RELATIONS WITH CAR RENTALS. AS SUCH DISALLOWANCE OF RS.1 80 641/- UNDER THIS CLASS CLASSIFICATION OF EXPENSES IS WHOLLY UNJUSTIFIED. PARKING FEES : THERE HAS BEEN DRASTIC INCREASE IN CAR PARKING F EES ALMOST DOUBLE THE RATES. HOWEVER PARKING DEPENDS UPON VARI OUS CIRCUMSTANCES AND LINKING OF THE CAR PARKING CHARGES WITH CAR REVENUE AND ITS APPORTIONMENT IS NOT FAIR AND CORRECT. FUEL & LUBRICANT : FUELS & LUBRICANTS CONSTITUTES 51.75% OF THE REV ENUE FROM CAR RENTALS DURING THE YEAR AS AGAINST 33.65% IN TH E PREVIOUS YEAR. EXPENSES ON ACCOUNT OF FUEL AND LUBRICANT IS VARIABLE AND BEARS DIRECT RELATIONS WITH RUNNING OF CAR. THERE HAS BEEN INCREASE IN THE EXPENSES ON ACC OUNT OF THE FOLLOWING FACTS: A. ON ACCOUNT OF LOW UTILIZATION OF OWNED CAR FOR RENT ALS SUCH OWNED CARS WERE ALSO UTILIZED FOR FREE-TRIPS UNLIKE IN PR EVIOUS YEARS. SUCH FREE TRIPS DID NOT GENERATE ANY REVENUE FOR THE COM PANY DIRECTLY. B. THERE HAS BEEN APPROXIMATELY 15% INCREASE IN PRICE OF PETROL AND DIESEL. THE PRICE OF PETROL PER LITRE WAS RS.31. 74 IN THE YEAR 2002-03 AND IT INCREASED TO 35.26 IN THE YEAR 2003-04. SIMI LARLY THE COST OF DIESEL PER LITRE INCREASED FROM RS.20.87 PER LITRE TO RS.22.53 PER LITRE IN THE YEAR 2003-04. THUS THERE WAS APPROXIMATELY 1 5% RISE IN THE ITA NO. 2003/KOL/2010 7 COST OF FUELS DURING THE YEAR UNDER APPEAL WHICH CO ULD NOT BE ABSORBED BY THE INCREASE IN CAR RENTALS. 8.2 LD. CIT(A) OBSERVED WITH REFERENCE TO ABOVE EXP LANATION THAT ASSESSEE HAS SATISFACTORILY EXPLAINED THE REASON FOR THE RUNNING AND MAINTENANC E EXPENSES BEING DISPROPORTIONATELY HIGHER THIS YEAR. THE ASSESSEES EXPLANATION THAT IT PROVI DED TIME CABS NOT ONLY ON HIRE BUT ALSO TO THE CLIENTS WHO BOUGHT AIR TICKETS FROM IT FOR FREE DRO PPING AND PICKING TO AND FRO THE AIRPORT HAS NOT BEEN DOUBTED BY THE DEPARTMENT. THE EXPLANATION OF THE ASSESSEE HAS NOT BEEN CONTROVERTED AND NO DEFECT HAS BEEN POINTED OUT IN THE DETAILS SUBM ITTED BY THE ASSESSEE. WE THEREFORE CONFIRM THE ORDER OF LD. CIT(A) IN THIS REGARD. 9. IN THE RESULT THE APPEAL FILED BY THE DEPARTMEN T IS DISMISSED. - - - - . . . . / .# 0 1 / .# 0 1 / .# 0 1 / .# 0 1 2 2 2 2 ORDER PRONOUNCED IN THE COURT ON 09. 09. 2011. SD/- SD/- [ ! ! ! ! ] [ . .. . . .. . ] [ MAHAVIR SINGH ] [ S.V. MEHROTRA ] JUDICIAL MEMBER ACCOUNTANT MEMBER ( (( (2 2 2 2) )) ) DATED : 9TH SEPTEMBER 2011. - 5 + 6 76%/ COPY OF THE ORDER FORWARDED TO: 1. () /APPELLANT : INCOME TAX OFFICER/WARD-7(2) P-7 CH OWRINGHEE SQUARE ROOM NO.10 5 TH FLOOR KOLKATA-700 069. 2 + () / RESPONDENT : M/S. TIME TRAVELS PRIVATE LIMITED 13 CAMAC STREET KOLKATA-700 017 . 3. -# / CIT 4. -# ()/ CIT(A) KOLKATA. 5. 0 + #/ DR KOLKATA BENCHES KOLKATA [ 6 + / TRUE COPY] -#./ BY ORDER !> /ASSTT REGISTRAR [KKC ?@ #A> B /SR.PS]