1986 (2) TMI 106

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....is regarding assessment of profit under s. 41(2) of the IT Act, 1961. Truck was purchased by the assessee in 1973 for Rs. 11,000 and was sold at the same price on the date falling in the instant assessment year. The ITO computed the written down value of the truck at Rs. 5,490 and, as such, assessed the profits under s. 41(2) at Rs. 5,881. Stand of the assessee in appeal before the AAC was that de....

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....instant year the ITO allowed Rs. 161 as depreciation on the said truck. Thus, profit under s. 41(2) of the Act should be Rs. 2,471. Order of the AAC, is therefore, modified to the extent that profit under s. 41(2) shall be taken at Rs. 2,471 instead of Rs. 2,310. 4. The second issue is regarding investment made by the assessee in purchasing a new truck during the period relevant to the assessmen....

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....hearing the ld. Representatives of the parties we find that the order of the AAC does not require interference. At the outset, it does appear odd as to how only within a span of five months the past savings of assessee to the extent of Rs. 43,500 came out and were deposited in the bank, particularly at the juncture when a new truck was purchased and obviously investment therefor was needed. Suspic....