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2011 (1) TMI 1383 - AT - Income TaxEstimation of the income from trucks plying business (as per Section 44AE) - Non-acceptance of revised return of income furnished by the appellant - Disallowance made out of diesel expenses - Disallowance made out of truck repairing expenses - Disallowance of made out of the tyre expenses - Addition in respect of so called vehicle rent received from Dashrathbhai K. Chaudhary - HELD THAT:- It is not in dispute that the assessee was plying the goods carriage which were four. Therefore, the number of goods carriages plied by the assessee was well within the ambit of the section 44AE. The AO has rejected the book result and has estimated the income by making various disallowance out of the expenses claimed by the assessee. He also enhanced the receipt shown by the assessee. The estimated disallowance made by the AO were partly reduced by the CIT(A). Therefore, undisputedly, in the assessee’s case, the actual dispute is only with regard to estimation of the income from trucks plying business. When the Legislature has provided some formula for estimation of income in the case of a transporter, who owns less than ten goods carriages, there would not be any justification for not estimating the income of the assessee as per the formula prescribed in section 44AE. It is irrelevant whether the revised return furnished by the assessee is valid or not. When the question of estimation of the income of a transporter comes, Section 44AE is a good guideline in the case of transporter who owns less than ten goods carriage. The AO is directed to determine the income of the assessee as per the section 44AE of the IT Act - appeal of assessee allowed.
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