TMI Blog2012 (1) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... ted against the orders of the Commissioner of Income-tax (Appeals)-I at Chennai, all dated 28.6.2010 and arise out of the assessments completed under sec.153A read with section 153C read with section 143(3) of the Incometax Act, 1961. 2. The assessee, in all these cases was carrying on the business of running transport buses on the strength of route permit. The assessee had been regularly filing returns of income and books were audited. But when a consequent search was carried out by the department, it was brought to light that the assessee had leased out her buses and income was earned out of such lease arrangements. It is the case of the department that the assessee has not returned such lease income for taxation. Therefore, the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x(Appeals) upheld the issue of notice under sec.153A and consequent re-assessments and also upheld the levy of interest under sec.234A 234B. On these two points, the assessee is aggrieved, and therefore, the cross objections filed by her. 4. The Revenue has raised exactly common grounds for all the five assessment years under appeal. The grounds raised by the Revenue are extracted below : 1.a On the facts and in the circumstances of the case, the learned CIT(A) has erred in deleting the additions made by the A.O. towards income from lease of buses. 1.b The learned CIT(A) has erred in accepting the arguments of the AR without considering the reasons advanced by the A.O. in para 8 to 10 of the assessment order for computing the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported in 104 ITD 95. 5. The grounds raised by the assessee in her cross objections read as below : The appellant objects to the upholding of the legality of issue of notice u/s 153A rws 153C and the consequential reassessment; levy of surcharge on tax denies its liability to interests u/s 234A 234B respectively for 2002-03 a/y on the followings grounds: 1. NOTICE U/S 153A REASSESSMENT 1.1 The notice u/s 153A dated 23.9.2008 for 2002-03 a/y is illegal and non-est in law and therefore the said notice and consequent assessment are liable to be quashed. 1.2 The appellant prays for the production of strict proof and evidence relating to 2002-03 a/y by the department to substantiate the initiation of action u/s 132, only as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Shri A. Mahesh, the learned Chartered Accountant appearing for the respondent-assessee. 7. It is a fact on record that the assessee has been maintaining regular books of account with supporting vouchers and evidences to support the income returned by her in respect of business of bus transport carried on by her. The assessee has been filing returns of income regularly supported by those books of account. Therefore, in a consistent manner, the assessee has been filing her returns of income on the basis of books of account maintained by her. She has claimed depreciation in respect of buses and claim of such depreciation reduced the quantum of taxable income in a substantial manner. The assessee has replaced old buses with new buses off a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not in fact, brought out any conclusive findings against the assessee. Therefore, as rightly pointed out by the Commissioner of Income-tax(Appeals) no reliance can be placed on the so called lease agreements in preference to regular books of account maintained by the assessee. 8. In the facts and circumstances of the case, we find that the order of the Commissioner of Income-tax(Appeals) to accept the income returned by the assessee as per the books of account, is just and proper. The orders are upheld on this point. As this is the only point to be considered in all these appeals, we find that the first appellate orders stand good. The appeals filed by the Revenue are liable to be dismissed. 9 Now, coming to the cross objections fil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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