2004 (9) TMI 338 - AT - Income Tax

Summary

Issues:
1. Appeal against the order of CIT(A) for the assessment year 1994-95.
2. Estimation of income from truck plying and sale proceeds of scraps.
3. Set-aside order by CIT(A) and its maintainability.

Analysis:
1. The appeal was filed against the CIT(A)'s order for the assessment year 1994-95. The assessee, an individual deriving income from various sources, including truck plying, taxi car, and house property, declared an income of Rs. 46,750. The Assessing Officer (AO) estimated the income from truck plying using the provisions of section 44AE of the Income Tax Act, 1961, and included the sale proceeds of scraps separately. The dispute arose regarding the addition of Rs. 26,800, the value of the sale proceeds of scraps.

2. The Tribunal considered the evidence and arguments presented by both parties. It noted that the AO estimated the income from truck plying using section 44AE, which accounts for all income and expenses. The Tribunal opined that no separate addition should be made for the sale proceeds of scraps since the profit was not estimated based on receipts and expenditures. The Tribunal emphasized that scrap proceeds were part of the overall expenditure and could not be considered a separate source of income. Consequently, the Tribunal allowed this ground of appeal in favor of the assessee.

3. The next issue addressed by the Tribunal was the set-aside order by the CIT(A) to the AO's file. The Tribunal referred to a judgment by the Hon'ble Rajasthan High Court in the case of Prem Agencies vs. CIT, which determined that such grounds of appeal were not maintainable. Therefore, the Tribunal dismissed this ground of appeal.

4. In conclusion, the Tribunal partly allowed the assessee's appeal, ruling in favor of the assessee regarding the estimation of income from scraps but dismissing the appeal related to the set-aside order by the CIT(A).