1996 (3) TMI 180

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....Assessing Officer (AO) observed that the freight slips produced by the assessee were prepared by the assessee itself and were signed by the drivers in token of having received the freight. There was no acknowledgement from the truck owner as regards the freight. Moreover, in some of the slips the freight per ton was mentioned whereas in some it was not mentioned. In view of this the AO invoked the provisions of s. 145 and applied a net profit rate of 10% on the contract receipts. 3. Shri Suresh Ojha very strongly assailed the invoking of the provisions of s. 145. According to him, there were only two reasons given by the AO to apply s. 145, viz., that in some of the slips the rate of freight was not mentioned and that the slips did not b....

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....ns and the material on record. Lot of arguments flowed from both the sides as regards the challan that the transporter sends with the loaded truck and a copy of which is given to the owner of the goods. This in commercial parlance is known as lorry receipt and constitutes title to the goods. Now we take a case of supplier of goods who transports the goods to the buyer through a transporter. In that case, the supplier will hand over the goods to the transporter. The transporter becomes the bailee, who will issue lorry receipt to the supplier and send a copy of it along with the goods. The supplier will send the lorry receipt to the buyer, who, on the basis of this lorry receipt will claim the delivery of goods. Now we take the case of the as....