9911796707
TMI Blog2010 (1) TMI 905X X X X Extracts X X X X X X X X Extracts X X X X ..... would workout to Rs. 25,50,000 i.e., (45,000 x 50) + (1,50,000 x 2). However depreciation and interest including hire charges have to be allowed Estimate made by the Assessing Officer, based on the finding of the Income-tax Settlement Commission, as against the mere guess work of the CIT(A) - Held that:- assessee used to declare additional income from all other sources apart from income from main source, i.e., plying of trucks. In that regard, reference has been made by the CIT(A) to the application filed by the assessee which shows that income from three other sources also used to be claimed namely income from consultation services to the other transporters/truck owners, income from other transporters for the help rendered to procure rou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified in upholding the order of the CIT(A) ignoring the estimate made by the Assessing Officer, which was more scientific being based on the finding of the Income-tax Settlement Commission for the assessment years 1993-94 to 1995-96, as against the mere guess work of the CIT(A)." 2. The assessee had filed his return in respect of assessment year 2001-02. On scrutiny, assessment was completed on 16-1-2004 by the Assessing Officer under section 144 of the Act. The income of the assessee-respondent was estimated at Rs. 87,655 by making the order dated 2-9-2002 passed by the Settlement Commission for the assessment years 1993-94 to 1995-96. The Assessing Officer had also allowed depreciation, hire charges and interest out of the same. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other transporters to procure route permits. (iii) To extend help to the other transporters for running transportation business." 4. The CIT(A) has further noticed that assessee has been doing the business of plying of truck for a number of years and had gained rich experience. It did not bifurcate the gross income declared before the Settlement Commission head-wise by including income from his main business of plying of trucks. The Settlement Commission concluded that keeping in view the past history of the case, nature of assessee's business, income offered by the assessee before the Settlement Commission and income declared from truck business by other family members of the assessee the only basis for ascertaining his income wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese two family members of the assessee were comparatively of lower age as in the case of the assessee as the assessee has claimed depreciation of Rs. 3,99,240 in respect of total 52 trucks. This shows that the vehicles owned by the assessee were old as compared to the vehicles owned by the other two family members of the assessee named above. and this is a basis considered for adopting the average truck receipts at the rate of Rs. 45,000 per trucks in respect of 50 trucks in the present case." 5. The revenue approached the Tribunal against the aforesaid view of the CIT(A). The appeal of the revenue has been dismissed by holding that when there is an estimation of income because of absence of books of account then a difference in opinio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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