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2015 (7) TMI 900 - AT - Income TaxAddition u/s 69 - assessee submitted before the Assessing Officer that he had three vehicles and the cash deposited represented the receipts from running of the vehicles on hire in a business of tour and travel - Held that:- CIT(A) further observed that as per the provisions of Section 44AE, the income from plying, hiring or leasing of vehicles, other than heavy goods vehicles, is deemed to be ₹ 3500/- for every month or part of a month during which the vehicle is owned by an assessee. Thus the computation of income from the plying of the 4 vehicles works out ot ₹ 42000/- for each of the cars purchased in the FH 2005-06, and ₹ 38500/- and ₹ 31500/- for the cars purchased in May and July, 2006 respectively. The total income to be added in the hands of the assessee u/s. 44AE works out to ₹ 1,54,000/-. We find that Ld. CIT(A) further observed that assessee cannot claim lower profits, having failed to maintain books of account and get them audited under section 44AB, as laid down in section 44AE(7). The amount of ₹ 1,42,078/- is to be separately assessed as the investment of the assessee in purchasing the two vehicles, being the down payments for obtaining the loans. As the income from running of the vehicles on hire is computed u/s. 44AE, the addition of ₹ 11,53,350/-, presumed to be the gross receipts of hire, cannot be sustained. We further find that Ld. CIT(A) against the addition of ₹ 12,79,350/- (Rs. 11,53,350 + ₹ 1,26,000) confirmed the addition of ₹ 2,96,078/-. In view of the above, we find that Ld. CIT(A) has rightly restricted the addition from ₹ 12,79,350/- (Rs. 11,53,350/- + ₹ 1,26,000/-) to ₹ 2,96,078/- (Rs. 1,42,078 + ₹ 1,54,000). We are of the view that that the order of the Ld. CIT(A) is a well reasoned order which does not require any interference - Decided against Revenue.
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