1982 (4) TMI 103

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....arned a profit of Rs. 2,429.35, and the ITO accepted it. However, the assessee sold Truck No. MNS 5170, two cars No. MNS.-72 and BMF-6584 to Mahindra Family Trust for the amount of Rs. 10,605.88, Rs. 2,340.86 and Rs. 3,584.00 and the ITO did not accept the sale price and thereby made an ad hoc addition of Rs. 2,000 to the sale price of each vehicle, referred to above, on the ground that the sale price shown by the assessee is less than the market price of these vehicles, as the assessee failed to make satisfactory explanation to the enquiry that whether the sale price represented fair market value of these vehicles. Similarly, he made an addition of Rs. 1,620 out of director's travelling expenses on applying r. 6D of the IT Rules, 1962. The....

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....but no information was provided either by the counsel or by the assessee regarding it; none of the two sought adjournment. Therefore, there is no satisfactory explanation on the record for absence of the assessee on the date of hearing of the appeal. Hence we hold that the CIT (A) was justified in passing the ex-parte order and deciding the appeal on merits. 5. On merits, we are of the opinion that the assessee should succeed on the issue that whether the authorities below were justified in making the addition of Rs. 2,000 towards the travelling expenses of the directors of the company u/r 6D of the Rules. The reasons are that no doubt the assessee has made these sales to Mahindra Family Trust on the written down values at their respecti....