2025 (10) TMI 1362

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....of appeal before us:- 1. The order of the learned Commissioner of Income Tax [Appeals]. National Faceless Appeal Centre (NFAC), Delhi for the above Assessment Year is contrary to the law, facts and in the circumstances of the case. 2. The learned CIT(A) has erred in law and on facts in upholding the action of the learned Assessing Officer in not estimating the income of the assessee considering the nature of the assessee's business of plying goods carriages and the reasonableness of income estimation based on industry standards. 3. The learned CIT(A) has failed to appreciate that although the assessee owned more than ten trucks and hence was not eligible for the presumptive scheme under Section 44AE of the Inc....

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.... craves leave to add, amend, modify, or withdraw any of the above grounds at the time of hearing. 3.0 As identical issues are involved in both the issues, facts relevant for assessment year 2011-12 are taken up for adjudication and decision rendered thereon shall apply mutatis mutandis for assessment year 2012-13 also except in following figures. 4.0 We have heard the rival submissions and perused the materials available on record. The assessee is engaged in the business of lorry transport. The return of income for assessment years 2011-12 was filed by the assessee on 31.10.2011 declaring a total income of Rs. 6,56,750/-. It was duly processed u/s 143(1) of the act. Subsequently, the case of the sought to be reopened vide issuance of ....

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....ess the issues that were subject matter of additions and disallowances. It was also pointed out to the Ld. CIT(A) that the Coordinate Bench of this Tribunal in assessee's own case for assessment year 2015-16 had directed the revenue to adopt the profit by applying the presumptive income prescribed in section 44AE of the Act on estimated basis. The Ld. CIT(A) however ignored the contentions of the assessee and upheld the additions and disallowances made by the Ld.AO after giving marginal relief on account of adhoc disallowance of expenses by 3% i.e. 10% adhoc disallowance reduced to 7%. 6.0 We find that the identical issue was subject matter of consideration by this Tribunal in assessee's own case for assessment year 2015-16 in ITA No. 75....

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.... the number of goods carriages plied by the assessee was well within 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 th....