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TMI Blog2004 (8) TMI 312X X X X Extracts X X X X X X X X Extracts X X X X ..... ot have their own trucks at the relevant time, they hire the truck owned by other parties and take responsibility for paying the transport charges to such truck owners. But at the same time it is the responsibility of the customers for transporting their goods and charge the transportation charges meaning thereby that the transporters save only a petty amount which is normally called as commission, out of transportation charges received from the parties because transportation charges has to be paid to the trucks owners. Thus, I am of the opinion that so far as present cases are concerned, the total receipts computed on the basis of the TDS certificates could not be considered as assessee's own receipts for the purpose of s. 44AB of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income, the AO came to know that the total receipts of M/s Paras Transport Co. were at Rs. 75,41,750 whereas that of M/s Kaushal Transport Co. were at Rs. 60,67,500. Since the receipts of each one of the appellants exceeded Rs. 40 lakhs, the AO considered them defaulter for non-compliance of provisions of s. 44AB of the Act (none of these two appellants had either got audited their accounts or had furnished report of audit as required by the provisions of s. 44AB of the Act). During the course of penalty proceedings, the assessees were called upon to show cause as to why the penalty under s. 271B should not be imposed, but none of them complied with such opportunity. Ultimately the AO imposed penalty under s. 271B of the Act in both the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the truck owner and from such type of transactions the assessee was only receiving commission which was 1 per cent or 2 per cent. He, therefore, submitted that even if the total receipts are attributable to outsiders, then also the assessee having received only commission, the whole of the receipts cannot be considered as assessees' turnover. The counsel submitted another alternate argument which was based on the submission that so far as receipts on account of appellants' own trucks were concerned, those were only the assessees' turnover and even those receipts are excluded. The balance receipts which are attributable to truck owned by outsiders were less than Rs. 40,00,000 meaning thereby that the receipts on account of assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through the assessee (assessees being the transporters responsible for carrying on the goods of the parties the same cannot be considered as assessees' turnover), it is common and admissible way of business of transporters that if they do not have their own trucks at the relevant time, they hire the truck owned by other parties and take responsibility for paying the transport charges to such truck owners. But at the same time it is the responsibility of the customers for transporting their goods and charge the transportation charges meaning thereby that the transporters save only a petty amount which is normally called as commission, out of transportation charges received from the parties because transportation charges has to be paid t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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