Handling-distribution loss in dealing wholesale poly pack milk allowed as nature of business demanded such losses & % was consistent

Handling-distribution loss in dealing wholesale poly pack milk allowed. The nature of business demanded such losses and the percentage incurred was consistent.

Handling-distribution loss in dealing wholesale poly pack milk

ABCAUS Case Law Citation:
ABCAUS 1256 (2017) (05) ITAT

The Grievance:
The appellant assessee was aggrieved by the order passed by the Commissioner of Income Tax  (Appeals) [CIT(A)] confirming the disallowance made by the Assessing Officer (‘AO’) on account of day to day handling of distribution loss of milk claimed in the business of dealing in packaged milk.

Assessment Year : 2008-09
Date/Month of Pronouncement: May, 2017

Brief Facts of the Case:
The assessee was dealing in wholesale poly pack milk, which is delivered in crates. The AO, on the basis of Form 3CD observed that the assessee had claimed handling/distribution loss of 81,780 litres of milk on total sales of 1,20,91,781 litres, which came to 0.68% and 225 litres per day.

The AO was of the view that given the nature of the assessee’s business, the loss claimed by the assessee was on the higher side. He therefore disallowed 20% of such loss and added a sum of Rs. 16,35,600/-

When the matter went  before the CIT(A), the CIT(A) reduced the loss of Rs.12,70,600/-.

Observations made by the Tribunal:
The ITAT opined that the nature of assessee’s business demanded such loss to be incurred. It was noted that in the preceding assessment years 2005-06 to 2007-08 and assessment year 2009-10, assessee had incurred similar loss to the extent of 0.68%. In the A.Y 2005-06 such type of loss was duly allowed when the assessment fwas completed u/s 143(3). While in the A.Y 2009-10, the AO disallowed 20% of such loss.

The Tribunal opined that since the nature of the business demanded such losses to be incurred and the percentage of loss incurred by the assessee was consistent as compared to the earlier and subsequent years, the addition was unwarranted.

Held:
The ITAT set aside the order of the CIT(A) and allowed the appeal.

Handling-distribution loss in dealing wholesale poly pack milk
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24 Hour Free Wi-Fi facility at 28 Railway Stations of Konkan by JOISPOT Free Wi-Fi mobile app

24 Hour Free Wi-Fi facility at 28 Railway Stations of Konkan. JOISPOT Free Wi-Fi mobile app to provide 2 MBPS high speed wireless internet with unlimited upload

24 Hour Free Wi-Fi

Ministry of Railways

21-May, 2017

Press Release

Inauguration of Free Wi-Fi facility at 28 Railway Stations  

Minister of Railways Shri Suresh Prabhakar Prabhu has inaugurated the WiFi facility from Kudal Railway Station today at 28 Railway Stations of Konkan Railway. Indian Railways  has tied up with M/s SYSCON/JOISTER for provision of 2 Mbps peer to peer 24 hrs FREE Wi-Fi INTERNET bandwidth at 28 stations of Konkan Railway. 

In line with Government’s Digital India Initiative, M/s SYSCON/JOISTER are providing the JOISPOT brand Wi-Fi in Pune & Mumbai educational institutes in Maharashtra state and have now undertaken as  part of their Corporate Social Responsibility (CSR) activity of providing FREE Wi-Fi bandwidth to the rural area on the Konkan route.

 JOISPOT Free Wi-Fi mobile app provides 2 MBPS high speed Wireless internet with unlimited uploads. The FREE Wi-Fi Internet bandwidth is provided at the following Railway stations of Konkan Railway:

1.      Kolad
2.      Mangaon
3.      Veer
4.      Karanjadi
5.      Vinhere
6.      Diwankhavati
7.      Khed
8.      Anjani
9.      Chiplun
10.  Kamthe
11.  Sawarda
12.  Aravali Road
13.  Sangameshwar
14.  Ukshi
15.  Bhoke
16.  Ratnagiri
17.  Nivasar
18.  Adavali
19.  Vilavade
20.  Rajapur Road
21.  Vaibhavwadi Road
22.  Nandgaon Road
23.  Kankavali
24.  Sindhudurg
25.  Kudal
26.  Zarap
27.  Sawantwadi Road
28.  Madure⁠⁠⁠⁠

Unlimited FREE Wi-Fi facility will be provided at 28 stations from KOLAD to MADURE in the initial phase with a peer to peer speed of 2 Mbps. The system can provide access to about 300 users at bigger stations and about 100 users at smaller stations. 

This facility will  help travelling public, commutes & tourists on Indian Railways to access essential information and they could use their time productively while waiting for trains at railway stations. This initiative of corporation is a steps towards making a smarter India.

Konkan Railway always believes in providing better passenger amenities to its passengers for their comfortable journey.