9911796707
TMI Blog2011 (2) TMI 1489X X X X Extracts X X X X X X X X Extracts X X X X ..... 68 of the Act. 3. The facts relating to the same are stated in brief. The assessee, apart from doing business in rice and grocery items, is also engaged in plying of lorries on hire. He declared income from plying of lorries in accordance with the deeming provisions of s. 44AE of the Act at the rate of ₹ 3500/- per month per lorry. The assessee was plying four lorries and accordingly, a sum of ₹ 1,68,000/- was offered as income from that source. During the year under consideration, the assessee introduced a sum of ₹ 3,60,000/- in his current account in the books of grocery business. The source there of was explained to be amount realized from the business of plying of lorries. Since the income returned from the busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d/2010, vide its order dated 23rd July, 2010 has dealt with an identical issue and has held that the cash represented by the amount of depreciation should be treated as available with the assessee. 7. We have heard the rival contentions and carefully perused the record. In the case of Shri Rakesh Arvindbhai Patel vs. ITO , referred supra, we notice that the SMC bench of ITAT, Ahmedabad has dealt with an identical issue and has rendered its decision in accordance with the contention raised by the Ld A.R For the sake of convenience, we extract below the operative portion of the said decision. I have heard the rival submissions and perused the materials on record. The undisputed facts of the case are that the assessee is engaged i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ₹ 2,12,696/-. Thus the income of the assessee before depreciation was ₹ 4,22,350 (Rs.2,12,695 +Rs.2,09,654/-) and after depreciation allowance of ₹ 2,09,654/- the net income of the assessee was ₹ 2,12,696/-. In other words the assessee by having income of ₹ 2,12,696/- had cash earning of ₹ 4,22,350/-. Thus in my considered opinion the maximum amount which could be added in the instant case comes to ₹ 2,309/- (Rs.4,24,659 ₹ 4,22,350/- only. I therefore modify the orders of the lower authorities and sustain addition of ₹ 2,309/- and delete the addition to the extent of ₹ 2,09,654/- . 8. It can be noticed that the difference between the income and cash earning was clearly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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