1979 (4) TMI 89

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....ss. The ITO worked out the income by estimating the income per unit of bus run. The ITO found that during the year, the assessee purchased on 27th Aug., 1973 a bus bearing No. TNF 4779 at a cost of Rs. 1,00,006. In the explanation for the source of this purchase the assessee stated that the amounts for the purchase came out of the gross income of the assessee before depreciation relating to the as....

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....sessee has pointed out that even though no books of accounts have been maintained the amounts available with the assessee, as could be seen from the assessments made for the earlier years, was sufficient to account for the purchase of the bus. He has given a detailed statement showing the wealth position as on 31st March, 1974 and the earlier years, which was given to the ITO as well and pointed o....

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..... yr. 1973-74 a deficit of Rs. 47,443. The working given by the assessee more or less conforms to the working given by the ITO. The purchase of the bus was made on 27th Aug., 1973. As against the above deficit worked out by the ITO the income for the asst. yr. 1974-75 upto the period 27th Aug., 1973 has to be considered. On a proportionate basis this should come to about Rs. 30,000. The ITO has no....

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....ng from financiers at high rates of interest. It is true that normally when an assessee makes a borrowing at high rate of interest, the cash available at home could be regarded as nil. The assessee is a bus operator. He already had a certain number of buses. He has to provide for the working expenses of these buses. When he makes further purchases of buses, it is not likely that he spends away all....