9911796707
TMI Blog1981 (3) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... ved that the assessee is an individual earning income from the proprietorship of a coal dept known as M/s M.L. Jha Coal Depot. The ITO noted that during the asst. yr. 1975-76 the assessee completed the construction of a house property situated at No. 14 -- Boldarpura, Bhopal. As per the income-tax records, according to the ITO the assessee had shown the total investment in the hands property at Rs. 52,967 as per the capital accounts filed for the asst. yrs. 1973-74, 1974-75 and 1975-76. In support of its plea, the assessee filed a valuation report dt. 25th Feb., 1978 indicating therein the cost of the construction of the building at Rs. 56,800 only. According to the ITO the construction of building started after Diwali, 1971 and was complet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fittings & Electrical fittings @ 15 as taken by the valuer 9,956 . 2. Cost of electric water pump as shown in the valuation report 800 . 3. Cost of collapsible gate 1,000 . 4. Isolated oil-tin-shed 840 sq.ft. @ 3 2,520 14,276 . . 14-276 . . Grand total Rs. . 80,651 In the result, the ITO arrived at the unexplained investment in the house property at Rs. 27,684 and the same was added back to the income of the assessee as income from undisclosed sources. 2. The ITO further looked into the account wherein the assessee had shown a net loss of Rs. 2,473 from plying two trucks. Since according to the ITO no accounts were kept by the assessee regarding the income from truck plying and considering the fact that the trucks w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come from truck plying is concerned, the AAC reduced the estimate of income to Rs. 6,000 as against estimated by the ITO at Rs. 8,000. Hence this appeal. 4. Heard both the ld. counsel for the assessee, Shri I.P. Sachdeva and the ld. Deptl. Rep., Shri D. U. Gedam. So far as the addition made on account of unexplained investment in the construction of the house property is concerned we may observe that the ITO recorded the statement of the approved valuer behind the back and did not furnish him any opportunity to rebut the same and as such firstly we thought that the matter is required to be sent back as principles of natural justice have been violated by the authorities below. Be that as it may, since both the authorities below misread the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the leakage also. 5. So far as the claim of loss in the truck business is concerned, we have noted that in the earlier 2/3 years also the assessee claimed losses and the same were accepted by the authorities below. If that is the position, we consider it proper to take the income from truck as nil as we have seen that during the year under consideration the trucks has become older and the assessee did not use them for public conveyance but for its own consequence. 6. In the result, the appeal filed by the assessee is partly allowed. 7. So far as the facts relating to the asst. yr. 1976-77 are concerned, according to the ITO the assessee claimed a loss of Rs. 10,263 in the truck plying business after allowing depreciation. According to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,000, the income from the old trucks, which are three to five years old cannot be said to be so high as taken by the authorities below i.e. at Rs. 16,000 and Rs. 19,000. Thus, we consider it proper to reduce the income from truck No. MPC-6520 which is 1970 model to Rs. 13,000 and MPD-6520 which is 1972 model to Rs. 15,000, subject to depreciation in both the cases. The assessee will get relief accordingly. 9. So far as the addition made in the coal account is concerned, we have seen that in the asst. yrs. 1973-74 & 1975-76 their results shown by the assessee in this account were accepted so much so that even 11 per cent rate was accepted which was shown in 1973-74, but during the asst. yr. under consideration the GP rate shown by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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