Presumptive taxation for truck operators cannot replace regular assessment when lower actual profit is claimed and evidence must be tested.

Income from a truck plying business cannot be mechanically assessed under the presumptive scheme of section 44AE where the assessee's returned income is supported by accounts and the dispute concerns whether actual profit is lower than the presumptive figure. Section 44AE(6) contemplates regular assessment under section 143(3) when the assessee seeks to show a lower actual profit, and the assessing authority must give a fair opportunity to substantiate that claim. As the books of account were not produced despite opportunities, the matter was remitted for fresh determination after adequate opportunity to the assessee, and the earlier resort to section 44AE was treated as improper.

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Issues: Whether the income from truck plying business could be assessed under section 44AE on the facts, and whether the matter required reassessment under section 143(3) after giving the assessee an opportunity to substantiate the returned income.

Analysis: The assessee had filed a profit and loss account and supporting details, but failed to produce the books of account before the assessing authority despite repeated opportunities. Section 44AE provides a presumptive method of estimation for truck operators, but sub-section (6) contemplates regular assessment where the assessee shows that the actual profit is lower than the presumptive figure. In such a case, the assessment is to be made under section 143(3). Since the returned income was supported by accounts on record, yet the books were not produced, the matter required a fair opportunity for the assessee to substantiate the claim before the income was finally determined.

Conclusion: The invocation of section 44AE in the manner adopted was held to be improper, and the issue was sent back for fresh determination after affording the assessee adequate opportunity.

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