9911796707
TMI Blog1996 (3) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... ere prepared by the assessee itself and were signed by the drivers in token of having received the freight. There was no acknowledgement from the truck owner as regards the freight. Moreover, in some of the slips the freight per ton was mentioned whereas in some it was not mentioned. In view of this the AO invoked the provisions of s. 145 and applied a net profit rate of 10% on the contract receipts. 3. Shri Suresh Ojha very strongly assailed the invoking of the provisions of s. 145. According to him, there were only two reasons given by the AO to apply s. 145, viz., that in some of the slips the rate of freight was not mentioned and that the slips did not bear the signatures of the truck owner or that there was no acknowledgement of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the challan that the transporter sends with the loaded truck and a copy of which is given to the owner of the goods. This in commercial parlance is known as lorry receipt and constitutes title to the goods. Now we take a case of supplier of goods who transports the goods to the buyer through a transporter. In that case, the supplier will hand over the goods to the transporter. The transporter becomes the bailee, who will issue lorry receipt to the supplier and send a copy of it along with the goods. The supplier will send the lorry receipt to the buyer, who, on the basis of this lorry receipt will claim the delivery of goods. Now we take the case of the assessee. The assessee transports the goods on behalf of Rajasthan State Mineral Devel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtaken by the assessee (sic). In effect, no defect has been pointed out which would necessitate the application of s. 145. We, therefore, direct that the results as declared by the assessee with respect to transportation contract be accepted. 6. The ground relating to the loading work of gypsum was not pressed at the time of hearing and hence, the same is rejected as such. 7. The third ground relates to the contract work of PHED. In respect of this contract, the assessee did not dispute the application of s. 145. The AO had applied a net profit rate of 10% which was retained by the learned CIT(A). Considering the various fact and circumstances, in our opinion, application of a net profit rate of 8% would meet the ends of justice and hen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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