TaxTMI 
TaxTMI 
2018 (11) TMI 634
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....ntum appeal in ITA No. 451/JP/2018 wherein the assessee has raised the following grounds :- " 1. The learned A.O. has and CIT (Appeal) has erred in law and circumstance of the case in making and sustaining the trading addition of Rs. 426331/- by saying that assessee has failed to produce the reconciliation of receipts from HG Infra Engg. Ltd whereas assessee has filed his return of income u/s 44AE of the Income Tax Act and he is not required to maintain books of accounts as per provisions of section 44AE of the Income Tax Act, 1961. 2. The learned A.O. has and CIT (Appeal) has erred in law and circumstance of the case in making and sustaining the trading addition by invoking the provision of section 145(3) of the Income Ta....
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....id not produce the details of income and other details including books of account for verification. The AO accordingly applied net profit rate at 8% on the total receipts and computed the business income at Rs. 4,89,331/-. The AO has also made an addition of Rs. 5,23,020/- on account of deposits in the bank account. The assessee challenged the action of the AO before the ld. CIT (A) and contended that when the assessee has offered the income under section 44AE, then the books are not required to be produced as the assessee is not maintaining regular books of account. Further, the assessee owns only three dumpers/trucks details of which were produced before the AO including the registration numbers and registration certificates. These three ....
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....by the assessee from plying of trucks which are three in numbers, the provisions of section 44AE are applicable and consequently the income offered by the assessee is as per the provisions of Income Tax Act. 3.1. As regards the addition made on account of deposits in the bank account, when the assessee's receipts from plying of trucks as well as pension income is many times more than the amount deposited in the bank account, then the said receipts itself explained the source of deposits made in the bank and no separate addition is called for. 4. On the other hand, the ld. D/R has submitted that the assessee did not file the return of income under section 139 of the Act and the income under section 44AE was offered by the assessee in r....
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....pplying net profit at 8% on the gross receipts, we find that the AO has accepted the fact that the freight receipts of Rs. 61,16,640/- as shown in the 26AS was received from M/s. HG Infra Engineering Pvt. Ltd. Once the receipts in question is on account of plying of trucks on hire and if the number of trucks owned by the assessee are less than 10, then the assessee is free to offer the income on presumptive basis under section 44AE of the Act. There is no dispute that at the relevant point of time, section 44AE envisaged the deeming provision for computation of profits and gains of business of plying, hiring or leasing of goods carrier @ Rs. 3500/- per heavy vehicle per month or part of the month. The assessee has given the details of truck....
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...., it is apparent that the net profit at 8% as adopted as per the provisions of section 44AD of the Act which is also part of the provision of computing the income on presumptive basis. Hence in the facts and circumstances of the case, when the assessee fulfills the conditions as prescribed under section 44AE, then the income computed by the assessee on the basis of said provision cannot be disturbed by applying the other basis which is not applicable in the case of the assessee. Hence, we delete the addition made by the AO in respect of the income from business of plying the trucks which were deployed with M/s. HG Infra Engineering Pvt. Ltd. 6. As regards the addition made by the AO of Rs. 5,23,020/- on account of deposits made in the ba....
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....facts and in law in confirming the levy of penalty of Rs. 30,583/- u/s 271B of the IT Act, 1961. 2. The assessee craves to amend, alter and modify any of lthe grounds of appeal. 3. The appropriate cost be awarded to the assessee. " 8. We have heard the ld. A/R as well as the ld. D/R and considered the relevant material on record. In the quantum, we have accepted the computation of income of the assessee as per provisions of section 44AE, therefore, as per sub-section (5) of section 44AE, the requirement of maintaining the regular books of account and getting the same audited under section 44AA and 44AB is dispensed with. For sake of ready reference, we quote section 44AE(5) as under :- "(5) The provisions of se....