TaxTMI 
TaxTMI 
2006 (7) TMI 111
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..... The assessee is a registered firm. The assessee is a dealer in fertiliser and also derived income from plying 3 lorries. The assessee filed return of income for the said assessment year on 13.02.1995 declaring a total loss of Rs.2,18,712/-. Later, a notice under Section 143(2) of the Income Tax Act (hereinafter referred to as the "Act"), was served directing the assessee to furnish details. After the details were furnished by the assessee, the Income Tax Officer completed the assessment under Section 143(3) of the Act, accepting the total loss return by the assessee. Further, he made addition by estimating the business income from 2 lorries under Section 44 AE at Rs.48,000/- and declared the assessment as 'N.A.'. Later, the Income Tax Officer was of the view that there was a mistake in the regular assessment on the ground that, instead of estimating the income from 3 lorries, income from 2 lorries were alone estimated and further, the deductions-expenses relating to the lorries w....
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....p; 1,15,696 Add: Surcharge at 12% 13,884 Balance payable 1,29,580 Add: Interest u/s 234A 10,360 Interest u/s 234-B &nbs....
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....owns not more than ten goods carriages and who is engaged in the business of plying, hiring or leasing such goods carriages, the income of such business chargeable to tax under the head "Profits and gains of business or profession" shall be deemed to be theaggregate of the profits and gains, from all the goods carriages owned by him in the previous year, computed in accordance with the provisions of sub-section(2). (2) For the purposes of sub-section (1), the profits and gains from each goodscarriage,- (i) being a heavy goods vehicle, shall be an amount equal to two thousand rupees for every month or part of a month during which the heavy goods vehicle is owned by the assessee in the previous year or, as the case may be, an amount higher than the aforesaid amount as declared by him in his return of income; (ii) other than a heavy goods vehicle, shall be an amount equal to one thousand eight hundred rup....
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.... a heavy goods vehicle, is estimated at Rs.1,800/- for every month or part of a month. The estimate is a comprehensive one. As per Section 44AE(3), any deduction allowable under the provisions of sections 30 to 38 shall, for the purposes of sub-section(1), be deemed to have been already given full effect to and no further deduction under those sections shall be allowed. The scheme is optional. If the assessee produce evidence that profits and gains from the business of plying the lorries during the year is less than the profits and gains specified in Sub Sections (1) and (2), the Assessing Officer should proceed to make the assessment and determine the total income or loss under Section 143(3) of the Act. The said option is given to the assessee under Section 44AE (6) of the Act. 9. In this case, the assessment was made under Section 143(3) of the Act and the Assessing Officer accepted the return of loss filed by the assessee. &....