9911796707
TMI Blog1978 (5) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... ck for Rs. 18,000 on 8th March,1963. This truck was sold out on 7th Aug.,1967 for a sum of Rs. 27,000. In the original assessment framed by ITO under s. 143, the income from plying of the truck for the asst. yr. 1968-69 was estimated at Rs. 5,000 before depreciation. Later on the ITO reopened the assessment, as according to him, profit under s. 41(2)of the IT Act on the sale of this truck was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000. The AAC rejected the assessee s contention as he was of the opinion that the estimate of the income from the truck at Rs. 8,000 before depreciation was quite reasonable. 3. Before us the learned counsel of the assessee submitted that the truck was of an old model, was purchased for a sum of Rs. 18,000 only and, hence the income estimated at Rs. 8,000 was on the higher side. We do not agree ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t under s. 41(2)of the IT Act,1961 was unjustified. 5. The assessee sold the truck on 7th Aug.,1967 for a sum of Rs. 27,000. Apart from a capital gain of Rs. 9,000, the ITO also worked out a profit of Rs. 4,500 under s. 41(2)and included this amount towards the total income of the assessee. In working out the profit under s. 41(2), he ITO held that sum of Rs. 4,500 was the amount of depreciation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the learned representative of the Deptt. In the absence of books or accounts or the written down value of the truck furnished by the assessee, the income from the truck for the asst. yr. 1967-68 was estimated at a net figure of 5,000. The ITO did not determine separately the amount of depreciation which was allowed to the assessee s. 41(2) of the IT Act contemplates the chargeability to Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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