2010 (1) TMI 905

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....nder:-   "1. Whether the ITAT is justified in upholding the order of the CIT(A), ignoring that the assessee having failed to maintain and on demand produce before the Assessing Officer, the details pertaining to the receipts of the business, which he was legally obliged to the Assessing Officer, under section 114 of the Indian Evidence Act, was justified in taking an adverse view.   2. Whether the ITAT is justified in upholding the order of the CIT(A) ignoring the estimate made by the Assessing Officer, which was more scientific being based on the finding of the Income-tax Settlement Commission for the assessment years 1993-94 to 1995-96, as against the mere guess work of the CIT(A)."   2. The assessee had filed his ....

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..... In respect of the assessee-respondent, the CIT(A) has observed while referring to the application filed before the Settlement Commission that assessee used to declare additional income from all sources although main source of his income has been from trucks. The following sources have been mentioned by the CIT(A) in its order namely:-   "(i) The efforts to arrange finance to the other transporters/truck owner.   (ii) By helping the other transporters to procure route permits.   (iii) To extend help to the other transporters for running transportation business."   4. The CIT(A) has further noticed that assessee has been doing the business of plying of truck for a number of years and had gained rich experienc....

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....Sh. Kesar Singh and Fateh Singh were also in the same business i.e., the business of plying of trucks/transportation. The average receipts in respect of 42 trucks in the case of Sh. Kesar Singh and 34 trucks in the name of Sh. Fateh Singh has been adopted at the rate of 55,000 each. However from the figure of depreciation claimed by these two persons (Rs. 13,29,244 in the case of Kesar Singh and Rs. 6,90,825 in the case of Fateh Singh) it appears that the trucks owned by these two family members of the assessee were comparatively of lower age as in the case of the assessee as the assessee has claimed depreciation of Rs. 3,99,240 in respect of total 52 trucks. This shows that the vehicles owned by the assessee were old as compared to the veh....