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2014 (1) TMI 834 - AT - Income TaxValidity of Assessment u/s 144 of the Act – Held that:- There was no defect in the books of account resulting in the very Financial Statements which book results could not be rejected for a separate estimation alone - The assessing authorities themselves have contradicted their findings inspite of the assessee claiming in the immediately preceding Assessment Year the Assessing Officer had accepted 1% to be taxed insofar as the learned CIT(A) in those years had directed the Assessing Officer to adopt 1% income on the gross lorry receipts of the assessee - there was no reason to divert from the consistent adoption of 1% of the gross receipts to be taxed in the hands of the assessee on the basis of book results insofar as the return of 1% income also includes the extra income generated by the assessee on the hiring of the tipper which has been restricted by the learned CIT(A) to 5% as against 24% returned. The Assessing Officer is directed to compute the total receipts income at 1% of the gross freight receipts plus receipts of tipper hiring and also to accept the income returned by the assessee disclosed in the audited Financial Statements for which there can be no separate addition insofar as the disallowance of salary and interest to the partners was not on the basis of assessee not to be subjected to assessment order being passed u/s.144 - The income from interest is to be taxed as returned by the assessee – Decided partly in favour of Assessee.
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