2019 (5) TMI 2047

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....er of the lower authorities is so far it is prejudicial to the interest of the appellant and the same is bad and erroneous in law and against the facts and circumstances of the case. 2. The learned CIT-[A] erred in not directing the assessing officer to compute the taxable income under section 44AE of the Act considering the nature of assessee business. The assessee rely on the judgment of the Honorable Income Tax Appellate Tribunal, Surat in the case of Gayathri Corporation vs. Income Tax Officer, Ward-5(1) Surat in ITA No. 1099/Ahd1204. 3. The learned CIT-[A] erred in confirming the addition made by the assessing officer under section 40(a)(ia) of the Act amounting to Rs. 2,69,536/- being interest paid to NBFCs without d....

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....nce under the head FC charges 5,66,667 (vi) Addition u/s. 40A(3) driver & cleaner salary 77,604 (vii) Disallowance under the head national permit expenses 5,87,500 (viii) Disallowance under the head interest expenses 6,15,926 (ix) Disallowance u/s. 40(a)(ia) Interest paid to NBFC without TDS) 2,69,536 (x) Disallowance u/s. 40(a)(ia) Professional charges paid without TDS 14,850 4. Being aggrieved by the above additions, the assessee preferred an appeal before ld. CIT(A), who vide impugned order deleted the additions made by the Assessing Officer on delivery charges, prior period expenses, professional charges, bank interest and national permit charges and the balance additions had been confi....

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....hin the ambit of the section 44AE. The Assessing Officer has rejected the book result and has estimated the income by making various disallowance out of the expenses claimed by the assessee. He also enhanced the receipt shown by the assessee. The estimated disallowance made by the AO were partly reduced by the CIT(A). Therefore, undisputedly, in the assessee's case, the actual dispute is only with regard to estimation of the income from trucks plying business. In our opinion, when the Legislature has provided some formula for estimation of income in the case of a transporter, who owns less than ten goods carriages, there would not be any justification for not estimating the income of the assessee as per the formula prescribed in section....