TMI Blog2001 (4) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... factories at Nasik, Jalgaon and Nagpur. The return of income for the assessment year 1994-95 was filed declaring loss of Rs. 3,18,226 and the same was processed under section 143(1)(a) of the Act on 10-4-1995. However, the case was later taken up for scrutiny and during the course of assessment proceedings the assessee was asked to file complete details of the journeys undertaken, billings, etc. The assessee accordingly produced the details. Further, the assessee was asked to submit the details regarding the instance between various cities in which the trucks were plied, which were also furnished. The Assessing Officer has taken the total billed kilometres and other factors into consideration and by presuming that 2 to 5 years old trucks wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs [1995] 213 ITR 282 (Bom.) (3)Dharamchand L. Shah [1993] 204 ITR 462 (Bom.) (4)CIT v. Prithipal Singh Co. [1990] 183 ITR 69 (Punj. Har.) (5)Modi Cement Ltd. v. Union of India [1992] 193 ITR 91 (Delhi) (6)Indo-Gulf Fertilizers Chemicals Corpn. Ltd. v. Union of India [1992] 195 ITR 485 (All.) (7)J.K. Synthetics Ltd. v. Asstt. CIT [1993] 200 ITR 584 (Delhi). The CIT(A) accepted both the contentions of the assessee and thus cancelled the penalty levied by the Assessing Officer. 5. Aggrieved, Revenue is in appeal before us. The case of the learned Departmental Representative is that the Assessing Officer has examined in detail the facts and circumstances of the case before coming to the conclusion that the assessee has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two trucks which were let out to VIP Industries Ltd. The assessee-company has not covertly run the trucks on hire other than letting out to VIP Industries. The addition made by the Assessing Officer was only on assumptions and presumptions because he assumed that a truck which is two to five years old gives an average of 7 kms. per litre and accordingly work out the number of kilometres each lorry might have run ignoring the fact that there is no yardstick that a truck has to give a mileage of 7 kms. per litre. He further submitted that the extra miles run were on account of several factors such as going to garage at the time of breakdown, going empty one way, detours on account of road blockades etc. The Assessing Officer has not given an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Punjab Haryana High Court. He thus strongly supported the order of the CIT(A). 8. We have carefully considered the rival submissions and perused the record. It is not in dispute that the Hon ble Punjab and Haryana High Court considered Explanations 3 and 4 to section 271(1)(c) of the Act to hold that penalty is not leviable in a case where the assessment was made determining loss figure. The Hon ble Supreme Court, in Civil Appeal, affirmed the order of the High Court and therefore, it has to be assumed that the observations of the High Court were accepted by the Apex Court. Under article 141 of the Constitution of India, a decision rendered by the Apex Court in a civil appeal has to be treated as the law of the land. It may also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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