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2011 (4) TMI 892 - ITAT, CHANDIGARHRejection of the books of accounts - Estimation of net profit - Held that:- AO noted that the amount of total freight receipts i.e., freight reflected in the TDS certificate furnished along with the return of income and freight actually shown in the Profit & Loss Account were different. As the assessee failed to produce the necessary record to be maintained in the course of carrying on transportation business and in the absence of the same, results shown by the assessee cannot be accepted & rejection of books of account is upheld Estimation of income in the hands of the assessee - Section 44AE lays down special provisions for computing Profit & Gains of business of plying/hiring or leasing of goods carriage by an assessee - Held that:- The option is given to the assessee to claim lower Profit & Gains where he keeps and maintains books of account as prescribed and gets its account audited under the provisions of the Income-tax Act - in the present set of circumstances where the books of account of the assessee have been rejected there is an occasion to estimate the income earned by the assessee from such trucks. The income earned by the assessee on account of trucks owned by others is to be computed at the rate of 3.5 per cent of the gross receipts being Rs. 7.05 crores. The income relating to the year under appeal needs to be worked out by applying the guidelines laid down by section 44AE at the rate of Rs. 3500 per month per truck. The assessee is not entitled to any claim of depreciation on the said trucks, which is deemed to be allowed while computing the income in view of the provisions of section 44AE - in favour of assessee for statistical purposes.
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