2010 (7) TMI 1102

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....of Income Tax (Appeals)-II, Baroda [hereinafter referred as (CIT)] is against law and facts. (b) In these grounds of appeal, the Income Tax Officer, Ward 2(2),Baroda is referred to as the Assessing Officer or the Learned Assessing Officer and the Commissioner of Income-tax (Appeals)-II, Baroda is referred to as Learned Commissioner of Income Tax(Appeals) or C.I.T.(A). (c) Your appellant craves leave to add, alter, amend or withdraw all or any of the following grounds of appeal.   2. The Learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the Learned Assessing Officer in interpretation and application of various provisions of the Income Tax Act and accounting principles. 3. The Learned Commissi....

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.... repayment of loans, investments etc. as per accounting principles for preparation of Cash Flow Statement. This fundamental principal of cash flow is ignored, understood and implemented prejudicially against the appellant." 3. The brief facts are that the assessee is engaged in the business of transportation and plying goods carries vehicles and owned four light commercial vehicles during the year. The return of income was filed under section 44AE of the Income Tax Act on20-3- 2007 declaring total income of Rs. 1,45,250/-. On verification of the Bank account the Learned Assessing Officer noted that the assessee had following expenses/investments:- Particulars. Amount Rs. Household expenses 72,000/- Investment in shares ....

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....d the order of the Learned Commissioner of Income Tax (Appeals). 7. I have heard the rival submissions and perused the materials on record. The undisputed facts of the case are that the assessee is engaged in plying of light commercial vehicles and the assessee has declared its income in accordance with the provisions of section 44AE of the Act at Rs. 2,12,696/-. The Learned Assessing Officer observed that the assessee has made personal investments and personal expenditure of Rs. 4,24,659/- during the year under consideration. Thus according to the Learned Assessing Officer the assessee could not explain the source of remaining amount of investment and personal expenses of Rs. 2,11,963/- ( Rs. 4,24,659 - Rs. 2,12,696/- ). The explanation....