TMI Blog2019 (10) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... e the claim of agricultural income of ₹ 2,50,000/- declared in the original return of income. Once the assessment is framed based only on original return of income then the excess claim of agricultural income in the original return of income is a subject matter of scrutiny and enquiry. The assessee himself has admitted that actual agricultural income is only ₹ 90,500/-, therefore, the excess amount of agricultural income declared in the original return of income is liable to be added as income from undisclosed sources under the head income from other sources. Addition from the business of truck hiring - estimation as per the provisions of Section 44AE - HELD THAT:- A.O. has not disputed that the assessee has offered income under the provisions of Section 44AE of the Act in respect of the truck hiring business, however, in the process of applying the presumptive provisions U/s 44AE of the Act, the A.O. has estimated the income without citing any basis or criteria. Therefore, the income of the assessee is required to be estimated as per the provisions of Section 44AE of the Act. From perusal of the relevant record and particularly the registration certification of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of plying of trucks at ₹ 3,50,000/- as against the income of ₹ 2,15,000/- declared by the appellant. The assessee had already shown the income of plying the trucks u/s 44AE hence addition of ₹ 1,35,000/- made on the basis of estimation by the AO and confirmed by the CIT(A) is being contrary to the provision of law and facts, kindly be deleted in full. 5. The appellant prays your honour indulgences to add, amend or alter of or any of the grounds of the appeal on or before the date of hearing. 2. At the time of hearing, the ld AR of the assessee has stated at bar that the assessee does not want to press ground No. 1 of the appeal and the same may be dismissed as not pressed. The ld DR has raised no objection if ground No. 1 of the assessee s appeal is dismissed as not pressed. Accordingly, ground No. 1 of the assessee s appeal is dismissed being not pressed. 3. Ground No. 2 of the appeal is regarding trading addition made by the A.O. by applying N.P. rate at 8% of liquor sale. The assessee is an individual and proprietor of M/s of M/s Sohan Nath. The assessee was carrying on liquor and truck hiring business. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining any books of account and despite show cause notices issued by the A.O., the assessee failed to produce books of account in respect of liquor business. The A.O. has estimated the income by adopting N.P. rate at 8% as it is provided U/s 44AD of the Act which is a modified provision for estimation of income. He has relied upon the orders of the authorities below. 6. I have considered the rival submissions as well as relevant material on record. There is no dispute that the assessee has neither declared any income from liquor business in the original return of income filed on 12/07/2013 nor produced books of account before the A.O. despite the assessee was specifically asked. Though, during the assessment year, the assessee filed a revised return on 30/08/2015, however, the same was belated and not a valid revised return. The A.O. treated the same as nonest. Thus, the A.O. has proceeded to estimate the income of the assessee from liquor business by taking the turnover as shown in the alleged revised return. The dispute is limited regarding the reasonable and proper basis i.e. net profit for estimation of income of the assessee. The A.O. applied net profit at 8% i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then the agricultural income shown in the original return of income at ₹ 2,50,000/- was the subject matter of verification. The assessee himself has admitted the correct agricultural income inflated in the return of income is required to assessee as income from other sources. 10. I have considered the rival submissions as well relevant material on record. The assessee declared agricultural income of ₹ 2,50,000/- in the original return of income filed on 12/07/2013. Subsequently, the assessee in the revised return of income as filed on 30/8/2015 reduced the agricultural income to ₹ 90,500/-. There is no dispute that if there is a mistake in the original return of income, the assessee can rectify it by filing revised return of income. However, the assessee has not filed valid revised return of income and therefore, the same was treated as nonest. Further, even if, a wrong income is offered to tax, the same can be rectified, however, it is not a case of wrong income offered to tax but the assessee claimed agricultural income which is exempt from tax at ₹ 2,50,000/- and subsequently come out with the plea that the actual agricultural income is o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vehicles owned by the assessee was not produced before the A.O., therefore, the A.O. after considering the receipts deposited in the bank account from the truck hiring business, has estimated the income at ₹ 3,50,000/- which is fair and reasonable. He has relied on the orders of the authorities below. 14. I have considered the rival submissions as well as relevant material on record. Though, the A.O. has not disputed that the assessee has offered income under the provisions of Section 44AE of the Act in respect of the truck hiring business, however, in the process of applying the presumptive provisions U/s 44AE of the Act, the A.O. has estimated the income without citing any basis or criteria. Therefore, in these facts and circumstances, the income of the assessee is required to be estimated as per the provisions of Section 44AE of the Act. From perusal of the relevant record and particularly the registration certification of the vehicles, it is noted that all these vehicles owned by the assessee are heavy commercial goods vehicles, therefore, the income is required to be estimated @ ₹ 5,000/- per month per vehicle which comes to ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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