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TMI Blog2004 (10) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... peals). Since both the appeals as well as the cross-objections arise out of the very same order of the Commissioner of Income-tax (Appeals), we heard these matters together and are being disposed of by this consolidated order for the sake of convenience. 2. The only issue arises for consideration in this appeal of the revenue is regarding the estimation of income from the contract receipt. 3. Shri K.K. John, the learned departmental representative submitted that the assessee is a partnership firm doing business as transport contractor and supplier of fire woods to Grassim Industries, Mavoor. On examination of books of account and other evidences produced before the Assessing Officer, the Assessing Officer found that the accounts mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t appellate autho-rity fixed the income at 4 per cent instead of 8 per cent fixed by the Assessing Officer. The main contention of the learned DR is that if the income is fixed at 4 per cent on estimation basis, the taxable income will be less than the income declared by the assessee itself for taxation. Therefore, according to the learned DR estimation of income at 4 per cent of the total receipt is not justified at all. 4. Coming to the cross-objection, the learned DR submitted that the assessee has used the lorry for his own business and, therefore, lower authorities granted depreciation at the rate of 25 per cent. According to the learned DR the assessee is not entitled for depreciation at the rate of 40 per cent as claimed in the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that the assessee is using lorries which belongs to them for transporting the goods to Grassim Industries. Therefore, the assessee is entitled to higher rate of depreciation at the rate of 40 per cent. The learned representative submitted that the lower authorities disallowed the claim of the assessee only on the ground that the lorries were not running on hire but it was used in the assessee s own business. According to the learned representative for the assessee, running of lorries on hire do not mean using the lorries as a parcel service or running lorry on hire charges. According to the learned representative for the assessee when the contract itself is for transporting the goods for Grassim Industries the correct rate of depreciat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Indore Bench of the Tribunal observed that the business is not mathematics and it would only be natural to expect variations in the trading conditions from time to time. Therefore, the generalised statement made by the lower authorities regarding the vouchers and bills maintained by the assessee was rejected by the Tribunal. In the case of our hand, the facts are entirely on different footings. The bills and vouchers admittedly not properly maintained and it is also not the case of the assessee that the accounts are subjected to statutory audit. In view of the factual circumstances of the case, in our view, the decision of the Indore Bench of the Tribunal is not applicable to the facts of this case. 8. The main objection of the lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee is estimated at 4 per cent the profit of the assessee would be less than the income declared in the return. This factual aspect was not disputed by the assessee. Therefore, we find that there is no justification on the part of the Commissioner of Income-tax (Appeals) in estimating the income less than the income declared by the assessee. From the materials available on record, we find that for the assessment year 1996-97 the admitted income by the assessee is at the rate of 7.83 per cent and for the assessment year 1997-98 the admitted rate of profit is at the rate of 6.7 per cent. By taking into consideration of the admitted rate of income and also the gross profit rate assessed for the earlier assessment years and also th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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