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TMI Blog2012 (5) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... unal was justified in law in confirming the order of the Ld. CIT(A)-I, Kanpur in deleting the addition of Rs.29,21,738/- made by the AO on a/c excess generation of income by invoking the provisions of section u/s 56(1) of the Act without appreciating that assessee failed to explain source and nature of generation of his capital." Heard Sri Dhananjay Awasthi, learned counsel for the appellant and Sri Suyash Agrawal, learned counsel appearing for the assessee-opposite party. The assessee is proprietor of M/s Nitin Freight Carrier. He is also one of the directors of Northern Alkalies (P) Ltd. In the return, he disclosed income under Section 44AE of the Income Tax Act (hereinafter referred to as 'the Act') with the allegation that he possesses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner of Income Tax v. Anil Kumar Arya (2009) 310 ITR 205. Considered the respective submissions of the learned counsel for the parties and perused the record. Section 44AE inserted by Finance Act, 1994 provides special provision for computing profits and gains of business of plying, hiring or leasing goods carriages. It opens with an non obstanate clause by giving an overriding effect over sections 28 to 43C, in the case of an assessee who owns not more than ten goods carriages. Income of such assessee chargeable to the tax under the head "Profits and gains of business or profession" shall be deemed to be the aggregate of the profits and gains, from all the goods carriages owned by him in the previous year, computed in accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ................... 32.2 The estimated income is comprehensive. All deductions under section 30 to 38 including depreciation, will be deemed to have been already allowed and no further deduction will be allowed under these sections. The written done value will be calculated, where necessary, as if depreciation as applicable has been allowed. In the case of firms, the normal deductions to the extent allowed under clause (b) of section 40 will be allowed. 32.3 An assessee who filed the return, estimating income on the basis of the specified amount per truck or estimating a higher income, will neither be required to maintain books of account under the provisions of section 44AA, nor required to get accounts audited under the provisions of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e counsel for the revenue attempts to justify the addition with the aid of Section 56 i.e. income from other sources. It has no application here for the simple reason, as held by the Apex Court where an an income can appropriately fall under Section 28 as business income, or any other specific head of income, no resort can be made to Section 56 vide S.G. Mercantile Corpn. (P.) Ltd. v. Commissioner of Income-tax (1972) 83 ITR 700. Income, if it is changeable to tax under any heads specified in Section 14, item A to E, it cannot be changed as income from other sources. Meaning thereby that if a particular income is referable to any one of the specified heads A to E, such income is not chargeable under Section 56, even if, it cannot be taxed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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