COMMISSIONER OF INCOME TAX Vs. MARIKAMBA TRANSPORT CO.

JUDGEMENT

(1.) THIS appeal is filed by the revenue challenging the order passed by the Income Tax Appellate Tribunal, Bangalore Bench 'B, Bangalore, dated 26.07.2013 for the Assessment Year 2009 -10. The brief facts of the case are that the assessee has filed the return of income for the Assessment Year 2009 -10 declaring the total income of Rs. 19,07,890/ -. Scrutiny assessment was completed under Section 143(3) of the Income -tax Act, 1961 (hereinafter referred to as the Act' for short) on 28.12.2011 by computing the total income of Rs. 17,82,64,920/ - and while doing the said assessment, the Assessing Officer had added payments made to sub -contractors towards freight charges of Rs. 17,63,57,030/ - under Section 40(a)(ia) of the Act. Aggrieved by the same, the assessee carried the matter in appeal before the Commissioner of Income -tax (A), Hubli, which was allowed by the Appellate Authority, against which, the revenue preferred an appeal before the ITAT, Bangalore. The Tribunal following the Judgment of Ahmedabad Bench in the case of Valibhai Khanbhai Mankad v. Dy. CIT(OSD) : [2011] 46 SOT 469 : 12 taxmann.com 160 dismissed the appeal filed by the revenue. Aggrieved by the same, the Revenue is in appeal before this Court under Section 260A of the Act.

(2.) WE have heard Sri K.V. Aravind, learned counsel appearing for the Revenue as well as Sri A. Shankar, learned counsel appearing for the assessee. After hearing the parties and perusing the records, the only question that arises for our consideration is: