9911796707
TMI Blog2019 (11) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... a partnership firm engaged in the business of truck plying and providing transport services. Income of Rs. 2,32,322/- declared in the income tax return filed on 8.10.2014. Case selected for scrutiny through CASS followed by issuing of notices u/s 143(2) of the Act. During the course of assessment proceedings Ld. A.O observed that there were additions to the capital account of the partners. The source of capital was asked. Assessee furnished the reply but they were not sufficient to convince the Ld. A.O, therefore he made the addition of Rs. 30,50,000/- for unexplained capital. Ld. A.O. also observed that there is a mismatch in the gross receipts shown by the assessee in the Profit & Loss Account as against the booking commission received b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact the books of accounts are duly maintained and audited. The CIT (A) also erred in maintaining the addition. 3. That on the facts and circumstances of the case the AO erred making an addition of Rs. 3,OO,OOO/- U/s 44AE of the IT Act, 1961, without appreciating the fact that the books of accounts are duly maintained and audited. The CIT (A) also erred in maintaining the addition. 4.That on the facts and circumstances of the case the AO erred in calculating assessed income. Income shown in the return of Rs. 2,32,322/ - was not deducted from the additions made as age of profit, as the assessment order was passed through restoring the provisions of section 145 of the Income Tax Act. 4.Appellant reserve his right to add, alter or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in their individual capacity are earning income from finance business. In this business they discount the lorry receipts, pay the discounted amount to the Drivers and on the due date which is normally 2 to 5 days from the date of lorry receipts, recover the amount from the party for which material was delivered. Reference was made to the balance sheet of both the partners. In paper book page-46 in the balance sheet as on 31.3.2013 of Smt. Ravinder Kaur Ratan and Shri Puvinder Pal Ratan the outstanding sundry debtors (bills in hand) are Rs. 19,18,250/- and Rs. 23,59,479/- respectively. The assessee's claim is that the source of capital introduced during the year is majorly from liquidating the outstanding debtors as on 31.3.2013. 8. We howe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the revenue are shown in the books of respective offices. Assessee also owns five trucks and income from running of these trucks were also disclosed. He prayed that the lower authorities erred in rejecting the books of accounts and applying notional profit on the gross booking commission during the year. 11. Per contra Ld. Departmental Representative vehemently argued supporting the orders of both the lower authorities. 12. We have heard rival contentions and perused the records placed before us. Through Ground No.2 assessee has challenged the action of Ld. A.O of rejecting books of accounts u/s 145 of the Act and applying the notional profit rate of 5% on the booking commission of Rs. 3,78,90,213/- thereby making addition of Rs. 18,94, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owned by the assessee. The net income before distributing the remuneration to the partners is at Rs. 8,03,738/-. There is no whisper in the Profit & Loss account about the total turnover, gross receipts of the trucks owned by the assessee, loss incurred in running the trucks. It has been contended by the Ld. Counsel for the assessee that the figures have been consolidated but even if they have consolidated the details should appear in schedules attached to the balance sheet and Profit & Loss Account. Perusal of the paper book shows that no tax audit report has been filed, no such schedules are attached relating to heads appearing in the Profit & Loss Account. Even though the assessee was provided sufficient opportunity by the Ld. A.O to gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee. Further our this decision of adjudicating of Ground No.2 shall not be considered as a precedence for the subsequent years. In the result Ground No.2 of the assessee's appeal is partly allowed. 15. Apropos Ground No.3 relating to addition u/s 44AE of the Act at Rs. 3,00,000/-, we observe that since we have already applied net profit rate on the total turnover of the assessee including freight receipts from running trucks, making a separate addition u/s 44AE of the Act is uncalled for and therefore same is directed to be deleted. In the result Ground No.3 of the assessee is allowed. 16. Apropos Ground No.4 wherein the assessee has challenged the calculation of assessed income and submitted that the income disclosed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
