2006 (7) TMI 111

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....e accounting year  ended on 31.03.1994.   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 de....

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....bsp;                                 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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....g or leasing goods carriages. (1) Notwithstanding anything to the contrary contained in  sections  28 to 43C, in the case of an assessee, who 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 afo....

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....g a heavy goods vehicle, is estimated at Rs.2,000/- for  every month or  part  of  a  month.   The income from each truck, other than 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....