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TMI Blog2022 (9) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... ere was no justification on the part of the AO to have summarily rejected the same. We, thus, direct the AO to accept the assessee s claim of having garnered gross receipts in lieu of transportation services provided to the aforementioned parties and thus accept his income as disclosed u/s 44AE to the said extent. Garnered transportation receipts from M/s Coal Feeder, Raipur - As a word of caution, we may herein observe that the AO shall in the course of the set-aside proceedings not remain oblivion of the probability of existence of an unholy nexus between a coal trader/transport contractor and a small time transporter/subcontractor (owning less than ten heavy goods vehicles), pursuant whereto on the basis of such connivance a bogus claim of freight expenses raised by the coal trader/transport contractor in the garb of payment of transport charges to such small time transporter/sub-contractor (owning less than ten heavy goods vehicles) who had opted to be assessed at a fixed deemed amount on a per vehicle basis as per the deeming provisions contemplated u/s 44AE the exchequer would be divested of its legal dues. If in case the assessee is unable to substantiate his claim o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d his return of income for the year under consideration his case was reopened u/s.147 of the Act. 3. During the course of assessment proceedings it was observed by the A.O that the assessee had, inter alia, claimed to have garnered income from two streams of business, viz. (i) income from the business of plying of 5 heavy goods vehicles u/s.44AE of the Act: Rs.3,50,000; (ii) income from booking of transport work u/s.44AD of the Act : Rs.85,000/-. It was further observed by the A.O that an amount of Rs.3,91,17,728/- was found deposited in the assessee s bank account during the year under consideration, viz. (i) HDFC Bank account: Rs. 3,65,62,414/-; and (ii) Punjab Sind bank account: Rs.25,55,314/-. On being queried as regards the nature and source of deposits in his bank accounts it was the claim of the assessee that the same were sourced from his aforesaid business activities, as under: S. No. Name of party Nature of work Gross bill TDS Remarks 1 M/s. Coal Feeder Raipur Transporting 3,09,93,450/- NIL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have heard the Ld. Authorized representatives of both the parties, perused the orders of the lower authorities and the material available on record, as well as considered the judicial pronouncements that have been pressed into service by the ld. AR to drive home his contentions. As stated by the ld. AR that as instructed the Grounds of appeal Nos. 1 and 3 are not being pressed, therefore, pursuant to his concession the said grounds of appeal are dismissed as not pressed. 7. Ostensibly, the assessee as per the details divulged in his income-tax return was during the year stated to have been involved in two streams of business, viz. (i). plying of five heavy goods vehicles on hire; and (ii). contract work of coal lifting. Opting for disclosing his income from both the aforesaid businesses as per the respective deeming provisions provided in the statute, viz. Section 44AD (contract work of coal lifting) and Section 44AE (business of plying of heavy goods vehicles), the assessee had shown his income at an amount higher than that contemplated in the said deeming provisions, as under : Particulars Income disclosed in return of income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S.No. Name of Party Nature of work Gross bill TDS Remarks 1. M/s Coal Feeder, Raipur Transporting Rs. 3,09,93,450/- Nil Copy of ledger account filed. 2. M/s Coal Feeder, Raipur Coal Lifting Contract Work Rs. 8,47,968/- Rs.16,959/- Copy of ledger account and Form No. 26AS filed. 3. M/s Paras Coal Transportation Transporting Rs. 1,54,304/- Nil As per Form No. 26AS 4. M/s Shivnath Coal Transport Transporting Rs. 16,45,516/- Nil As per Form No. 26AS 5. M/s Agrawal Sponge Ltd. Transporting Rs. 31,550/- Nil As per Form No. 26AS 6. M/s Mahanadi Coal Transport T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is the claim of the Ld. AR that as the assessee had opted for and disclosed his income from plying of trucks at an amount higher than that worked out as per the presumptive scheme of taxation contemplated in Sec. 44AE of the Act, therefore, as per the concession provided in the said statutory provision he was exempted from the obligation of maintaining any books of accounts for the said stream of business under Sec. 44AA of the Act. It is further the claim of the Ld. AR that now when the assessee had opted for the presumptive taxation scheme under Sec. 44AE and had disclosed his income at an amount higher than that worked out under the said deeming provision, therefore, the same had to be accepted by the department without any reservation. Also, it was the claim of the Ld. AR that now when the assessee having disclosed his income under Sec. 44AE was not obligated to maintain any books of accounts for the said stream of business, therefore, he could not have been called upon by the AO to demonstrate as to why his income in absence of any supporting documents may not be accepted. 13. Admittedly, as per the scheme of Sec. 44AE i.e a presumptive taxation scheme made available on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other parties (at Sr.No.3 to 7 of the aforesaid chart) as had figured in his Form No. 26AS: Rs. 18,87,536/-; and (iii). balance receipts for which no explanation as regards the service recipient/payer had been given by the assessee: Rs. 53,88,774 (supra). 16. At the outset, we would not hesitate to observe that the claim of the assessee of having garnered gross receipts of Rs.3,82,69,760/- from plying of five heavy goods vehicles during the year (majority of which were put to use only for part of the year) is beyond our comprehension. In so far the gross receipts of Rs. 18,87,536/- (supra) as had figured in the assessee s Form No. 26AS i.e against the parties referred at Sr. No. 3 to 7 of the aforesaid chart are concerned, we are of the considered view that there was no justification on the part of the AO to have summarily rejected the same. We, thus, direct the AO to accept the assessee s claim of having garnered gross receipts of Rs. 18,87,536/- (supra) in lieu of transportation services provided to the aforementioned parties and thus accept his income as disclosed u/s 44AE to the said extent. 17. Apropos the assessee s claim of having garnered transportation receipts amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.10 QTY.5400.000 MT COAL FROM DIPIKA TO SILTARA A/C. Sunil Sponge Pvt. Ltd. Journal 2492 29,70,000.00 By Transportation paid All A/c. 2160.000MT @550/- PMT. B. NO.DS/10-11/006 TOWARDS D.O NO.04521/90557 DT.28.06.10 QTY.2160.000 MT COAL FROM DIPIKA TO SILTARA A/C. Shri Sita Ispat Power Pvt. Ltd. Journal 2493 11,88,000.00 By Transportation paid All A/c. 2700.000MT @550/- PMT. B. NO.DS/10-11/007 TOWARDS D.O NO.04558/90617 DT.28.06.10 QTY.2700.000 MT COAL FROM DIPIKA TO SILTARA A/C. Agrawal Sponge Ltd. Journal 2494 14,85,000.00 Carried Over 1,06,08,700.00 On a bare glance over the aforesaid extracts we are unable to comprehend that as to how the assessee with his fleet of five heavy goods vehicles (majority of which were put to use only during part of the year) was able to execute the transportation work of a substantial magnitude for the aforesaid party, viz. M/s Coa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O shall in the course of the set-aside proceedings afford a reasonable opportunity of being heard to the assessee who shall remain at a liberty to substantiate his claim on the basis of fresh documentary evidence. As a word of caution, we may herein observe that the AO shall in the course of the set-aside proceedings not remain oblivion of the probability of existence of an unholy nexus between a coal trader/transport contractor and a small time transporter/subcontractor (owning less than ten heavy goods vehicles), pursuant whereto on the basis of such connivance a bogus claim of freight expenses raised by the coal trader/transport contractor in the garb of payment of transport charges to such small time transporter/sub-contractor (owning less than ten heavy goods vehicles) who had opted to be assessed at a fixed deemed amount on a per vehicle basis as per the deeming provisions contemplated under Sec. 44AE of the Act, the exchequer would be divested of its legal dues. 18. Coming back to the issue under consideration and confining ourselves to the subject matter of controversy involved in so far the assessee before us is concerned, if in case the assessee is unable to substantia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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