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2010 (1) TMI 905 - HC - Income TaxCorrectness of estimation of income - Assessee having failed to maintain and on demand produce before the Assessing Officer, the details pertaining to the receipts of the business, which he was legally obliged to the Assessing Officer, under section 114 of the Indian Evidence - Assessee did not bifurcate the gross income declared before the Settlement Commission head-wise by including income from his main business of plying of trucks - Held that:- receipts are taken at Rs. 45,000 each in respect of 50 trucks. However, in respect of 2 trucks the receipts are taken by the assessee himself at Rs. 1,50,000 each. Thus the total receipts would workout to Rs. 25,50,000 i.e., (45,000 x 50) + (1,50,000 x 2). However depreciation and interest including hire charges have to be allowed Estimate made by the Assessing Officer, based on the finding of the Income-tax Settlement Commission, as against the mere guess work of the CIT(A) - Held that:- assessee used to declare additional income from all other sources apart from income from main source, i.e., plying of trucks. In that regard, reference has been made by the CIT(A) to the application filed by the assessee which shows that income from three other sources also used to be claimed namely income from consultation services to the other transporters/truck owners, income from other transporters for the help rendered to procure route permits and income from the help rendered to other transporters for running transportation business. It was on the basis of the aforesaid factors that the total income worked out by the Settlement Commission was not taken into account and, therefore, the argument raised by the revenue is devoid of merit. there cannot be any legal formula for working out the income and the Tribunal has taken correct view by adopting the opinion expressed by the CIT(A), no substantive question of law arise warranting admission of the appeal, appeal dismissed.
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