1995 (5) TMI 56

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....96,000. The plea was that a loan of Rs. 1,75,000 was taken from the bank and the balance amount was contributed from the sale proceeds of an old truck sold for Rs. 1,20,000. This plea found favour with the Assessing Officer. The assessee had also purchased a car for Rs. 1,08,000. Here also, the assessee had claimed that an old car had been sold for Rs. 95,000 and the sale proceeds had been utilised for purchasing a new car. The Assessing Officer noticed that no explanation had been furnished in respect of the balance amount of Rs. 13,000. The Assessing Officer while looking into the account of the assessee in the Canara Bank, noticed certain deposits, as under: (i) Rs. 50,000 on 28th May, 1987 (ii) Rs. 50,000 on 17th July, 1987 (iii) ....

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....May, 1987, and not on 6th May, 1986, as mentioned by the Assessing Officer. It is also noticed that the assessee had received a total sum of Rs. 11,82,000 by way of contract receipt. It cannot be ruled out that the assessee did have sufficient funds in his hands and deposits were made in the bank account from contract receipt also. The assessee had made sale of a truck and of a car during the year under appeal. The sale proceeds were partly deposited in the bank account and partly utilised for the purchase of new vehicles. The Assessing Officer took an adverse view that the assessee had failed to disclose the dates of sale of old vehicles as well as purchase of new vehicles. In our view, that alone should not be treated to be sufficient rea....

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.... light, ground No. 3 succeeds and the addition is deleted. 5. Grounds Nos. 4 to 7 and 9 to 12 relate to a common issue. The assessee had shown income from trucks also. The plea was that the three trucks owned by the assessee had been used in contract business and certain income was earned by way of hiring charges also. The Assessing Officer proceeded to estimate the income from trucks because the assessee maintained no books of account. The Assessing Officer noticed that a new truck PCF 8981 had been purchased during the year under appeal. Income @ Rs. 20,000 p.m. was estimated for this truck, for a period of three months. Expenditure for running and maintenance was allowed @ Rs. 8,000 p.m. Deduction was further allowed in respect of insu....

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....the preceding assessment year the assessee had shown income @ Rs. 1,250 p.m. and, if the income, as disclosed in this year is not accepted, it may be fixed between Rs. 15,000 and Rs. 20,000 for this year. This suggestion has been made by way of alternate plea. It has been pointed out that in asst. yr. 1990-91, assessment under s. 143(3) has been made and income, per truck, has been determined at Rs. 22,000. Similarly, in asst. yr. 1991-92, income per truck was determined at Rs. 20,000 only in assessment made under s. 143(3). 7. The learned Departmental Representative has, in reply, submitted that the assessee had earned hiring charges, as would be clear from the past assessments but true income was not declared. After giving benefit of de....