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Search Results Judgments > Act:INCOME TAX ACT, 1961 Section 44AE

Jul 18 2006

Commissioner of Income Tax Vs. Thirumalai Fertiliser and Co.

  • Decided on : 18-Jul-2006

Court : Chennai

Reported in : [2007]288ITR517(Mad); (2006)4MLJ1179

... .S. Janarthana Raja, J.1. The present appeal is filed under Section 260A of the Income Tax Act, 1961 by the Revenue against the order passed in I.T.A. No. 864/Mds/2000 by the Income Tax Appellate Tribunal, Madras, 'A' Bench. On 21.10.2003, this Court admitted the appeal and formulated the following question of law. 1. Whether in the ... notice under Section 143(2) of the Income Tax Act (hereinafter referred to as the 'Act'), was served directing the assessee to furnish details. After the details were furnished by the assessee, the Income Tax Officer completed the assessment under Section 143(3) of the Act, accepting the total loss return by the assessee. Further, he made addition by estimating the business income from 2 lorries under Section 44AE ... of income for the said assessment year on 13.02.1995 declaring a total loss of Rs. 2,18,712/-. Later, a notice under Section 143(2) of the Income Tax Act (hereinafter referred to as the 'Act'), was served directing the assessee to furnish details. After the details were furnished by the assessee, the Income Tax Officer completed the assessment under Section 143(3) of the Act ... income from plying 3 lorries. The assessee filed return of income for the said assessment year on 13.02.1995 declaring a total loss of Rs. 2,18,712/-. Later, a notice under Section 143(2) of the Income Tax Act (hereinafter referred to as the 'Act'), was served directing the assessee to furnish details. After the details were furnished by the assessee, the Income Tax ...

May 20 2002

Ajitsingh Raisingh Vs. ITO

  • Decided on : 20-May-2002

Court : Mumbai

Reported in : (2002)76TTJ(Mumbai)969

... of section 44AE. Then thereupon the assessing officer shall proceed to make the assessment of the total income or loss on the basis of assessment to be made under section 143(3) of Income Tax Act. Thus, he has argued that the assessing officer should have made the assessment under section 143(3) instead of applying the rate of income as provided under other sub-section of the section. In ... section (1) and (2) of section 44AE. Then thereupon the assessing officer shall proceed to make the assessment of the total income or loss on the basis of assessment to be made under section 143(3) of Income Tax Act. Thus, he has argued that the assessing officer should have made the assessment under section 143(3) instead of applying the rate of income as provided under other sub-section ... invoked the provisions of section 44AE and estimated the income of 6 trucks @ Rs. 24,000 annually at Rs. 1,20,000 and the income of the new truck was estimated at Rs. 21,000 being plied for part of the year. This section 44AE has been inserted in the Income Tax Act with a view to providing for a method of estimating income from the business of ... appellant and estimating the income of the appellant under section 44AE of the Act at Rs, 1,41,000.'2. The appellant is an individual engaged in the business of running trucks on hire. The main grievance of the assessee was in respect of rejection of the books of account and estimation of income by invoking the provisions of section 44AE of Income Tax Act. The facts in ...

Apr 30 2003

Mangat Singh Vs. Ito

  • Decided on : 30-Apr-2003

Court : Income Tax Appellate Tribunal (ITAT) - Agra

Reported in : (2004)90TTJAgra654

... income of Rs. 1,24,770 on reasonable ground while the Income Tax Officer of Ward-4, Gwalior, assessed the abovementioned total income by imposition of the provisions under sections 44AD and 44AE of the Act for single source of business.(ii) The Commissioner (Appeals) was not justified in upholding the additions made in total income by the Income Tax Officer but rejected the clause of said additions, i.e., section ... made in total income by the Income Tax Officer but rejected the clause of said additions, i.e., section 44AD.(iii) The Commissioner (Appeals) was wrong in accepting the true position of the assessee, i.e., he was doing only transport business by deploying his own two trucks, but he had twicely assessed under section 44AE of the Act for truck ... his own two trucks, but he had twicely assessed under section 44AE of the Act for truck operation and again 8 per cent of gross receipts of transportation business under section 44AD.(iv) The Commissioner (Appeals) was not justified to accept the assessment order made by the Income Tax Officer of twicely assessed the single source of business.I have ... section 44AE of the Act on the ground that it was not maintaining books of accounts. At the same time, the assessee declared another income of Rs. 44,000 on the basis of estimate claiming the same to be over and above the limit fixed under section 44AE of the Act.The assessing officer accepted the income from two trucks as declared under section 44AE of the Act but computed the income ...

Jul 02 1997

Ranjan Constructions Vs. Central Board of Direct Taxes

  • Decided on : 02-Jul-1997

Court : Orissa

Reported in : [1998]232ITR76(Orissa); 1997(II)OLR338

... Taxes (in short 'CBDT'), relating to admissibility of deduction on account of salary and interest to the partners of firms opting for estimation of income under Sections 44AD and 44AE of the Income-tax Act, 1961 (in short the 'Act'). Same was issued on the ground that doubt has been raised relating to deduction as regards salary and interest to the partners of a firm while estimating income ... the partners and is not an enabling section for claiming deduction. The admissible deductions are specifically mentioned under Sections 30 to 38 of the Income-tax Act. Hence, Sections 44AD(2) and 44AE(3) only state this obvious position by way of clarification. However, in view of the non-obstante clause in subsection (1) of Sections 44AD and 44AE, there is no ambiguity about ... mentioned under Sections 30 to 38 of the Income-tax Act. Hence, Sections 44AD(2) and 44AE(3) only state this obvious position by way of clarification. However, in view of the non-obstante clause in subsection (1) of Sections 44AD and 44AE, there is no ambiguity about the intention of the Legislature in this matter and the provisions of the Act are quite ... (page 98) : '4. Clause (b) of Section 40 lays down restriction on the deduction allowable on account of salary and interest to the partners and is not an enabling section for claiming deduction. The admissible deductions are specifically mentioned under Sections 30 to 38 of the Income-tax Act. Hence, Sections 44AD(2) and 44AE(3) only state this obvious position by ...

Feb 12 1996

Sethi Transport and Ors. Vs. Central Board of Direct Taxes and Ors.

  • Decided on : 12-Feb-1996

Court : Orissa

Reported in : [1997]226ITR274(Orissa)

... Board of Direct Taxes (for short, 'the Board'), Ministry of Finance, Government of India, opposite party No. 1, is ultra vires articles 14 and 265 of the Constitution of India and Sections 44AE, 119 and 194C of the Income-tax Act, 1961 (for short 'the Act'), and for a direction not to make any deduction from the amount due to the petitioners under Section 194C of the Act. Since the ... or amplified the scope of Section 194C of the Income-tax Act, 1961- It merely held that the said section is not confined to works contracts but also applies to labour contracts. The Supreme Court in that case was required to consider the question of applicability of Section 194C to labour contracts because the contention of the assessee was that the said section was applicable only to ... a particular case would come within the purview of Section 194C of the Income-tax Act or not depends upon the facts and circumstances of the case, the stipulations in the agreement between the parties, and other relevant factors. The Board's circular to the effect that transport contracts in general come within the purview of Section 194C is erroneous and illegal.15. The ... Section 194C of the Act. Since the facts and points of law involved in all the cases are similar, they were heard together with the consent of learned counsel for the parties and are being disposed of by this common judgment.2. Circular No. 681 (see [1994] 206 ITR 299), dated March 8, 1994, relates to deduction of income-tax at source under Section ...

Oct 14 2004

Pramod Kumar Sahu (Huf) Vs. Income Tax Officer

  • Decided on : 14-Oct-2004

Court : Income Tax Appellate Tribunal (ITAT) - Ranchi

Reported in : (2005)92TTJRanchi101

... of income of retail trades, a new scheme for computing profits and gains of such businesses presumptively at five per cent of the gross receipts has been introduced. This scheme is similar to the presumptive scheme of computation of income under Section 44AD or Section 44AE. A new Section 44AF has been inserted in the IT Act. Consequently, Chapter XII-C which provided for a flat tax of ... generally avoid payment of income-tax.10. In view of the above discussion I am of the view that the assessee being a producer of liquor cannot be treated as a retail trader for the purpose of Section 44AF of the Act although the assessee sells his products through outlets to the consumers. Accordingly, I hold that the provision of Section 44AF is not applicable ... object of enacting such provision it is clear that Section 44AF was introduced for retail traders who are engaged in sales and purchases of commodities or articles to the consumers. A simplified procedure had been introduced for such small traders having turnover of less than Rs. 40 lakhs who generally avoid payment of income-tax.10. In view of the above discussion I ... sum higher than the aforesaid sum as declared by the assessee in his return of income shall be deemed to be the profits and gains of such business chargeable to tax under the head "profits and gains of business or profession" : Provided that nothing contained in this sub-section shall apply: in respect of an assessee whose total turnover exceeds an amount of ...

Aug 31 2005

Shree Chalthan Vibhag Khand Udyog Vs. Income Tax Officer

  • Decided on : 31-Aug-2005

Court : Income Tax Appellate Tribunal (ITAT) - Ahmedabad

Reported in : (2006)104TTJ(Ahd.)654

... income and again they were eligible to claim deduction under Section 44AE of the Act, i.e., by showing income of Rs. 3,500 per month and in that situation also they were not liable to pay tax and hence there was no question of deduction of tax ... Section 133A of the IT Act was carried out by the AO on 6th Jan., 2003 and during the survey proceedings it was found that the appellant was not deducting the tax according to the provision of Section 194C of the IT Act, 1961 ... Section 44AE of the Act, i.e., by showing income of Rs. 3,500 per month and in that situation also they were not liable to pay tax and hence there was no question of deduction of tax on such payments.3.6 Regarding the payments received by mukadams for cutting charges on behalf of the labourers engaged by him, it was argued that their income ... Section 194C(1) of the IT Act between the sugar mill and such transporters. It was further mentioned by him that being low earning in transport business, the transporters, who were no one else than the member farmers, did not have taxable income and again they were eligible to claim deduction under Section 44AE of the Act, i.e., by showing income ...

Aug 31 2006

Income Tax Officer Vs. Project India

  • Decided on : 31-Aug-2006

Court : Income Tax Appellate Tribunal (ITAT) - Indore

Reported in : (2007)109ITD87Indore

... Section 147(a) of the Income-tax Act, 1961, for the reopening of an assessment must have a rational connection or relevant bearing on the information of the belief Rational connection postulates that there must be a direct nexus or live link between the material coming to the notice of the Income-tax Officer and the information of his belief that there has been escapement of the income ... ) to Section 44AD and 44AE. If the AO was not satisfied with the return of income and profit and loss account duly audited, then the AO should have proceeded to make assessment Under Section 143(3). The assessee, therefore, has rightly claimed the lower profit as compared to Section 44AD(1) and 44AE(1) on the basis of Sub-Section (5)/of Section 44AD and Sub-Section (6) of Section 44AE ... issue on the basis of which proceedings Under Section 147 had been initiated. This indeed is not permissible under the law.12. Hon'ble Supreme Court in the case of ITO v. Lakhmani Mewal Das 103 ITR 437, Held: The reasons for the information of the belief contemplated by Section 147(a) of the Income-tax Act, 1961, for the reopening of an assessment must have ... following ground: On the facts and in the circumstances of the case, the ld. CIT(A) has erred in annulling the assessment made in pursuance to notice Under Section 148 of the Income Tax Act, 1961 for the AY 1997-98 holding that the reasons recorded by the Assessing Officer for reopening the assessment was inadequate and as such the AO had no proper justification ...

Apr 17 1998

Pani Devi Vs. Union of India (UOI) and Ors.

  • Decided on : 17-Apr-1998

Court : Rajasthan

Reported in : [2000]245ITR798(Raj)

... Section 142(2A) of the Income-tax Act, 1961, requiring the petitioner to get his accounts audited from a certified auditor mentioned in the order.2. Learned counsel for the petitioner submits that the power to get accounts audited under Section 142(2A) of the Income-tax Act cannot be invoked in cases where the accounts of the assessee are already audited by reason of the provisions of Section 44AE ... the non obstante Clause in Section 142(2A) exempts operation of Section 142(2A) in cases where there has been an audit under Section 44AB. This argument is not acceptable for the reason that the non-obstante Clause and the phrase any other law for time being in force must of necessity include Section 44AB of the Income-tax Act.4. It is, however, ... provisions of Section 142(2A) of the Income-tax Act which stipulates that the provisions of Sub-section (2A) shall have effect notwithstanding that the accounts of the assessee have been audited under any other law for the time being in force or otherwise. The argument is that the existence of the non obstante Clause in Section 142(2A) exempts operation of Section 142(2A ... under Section 44AB. This argument is not acceptable for the reason that the non-obstante Clause and the phrase any other law for time being in force must of necessity include Section 44AB of the Income-tax Act.4. It is, however, directed that the petitioner shall be at liberty to make representation against this order pointing out to the Assistant Commissioner of Income-tax ...

Sep 15 2014

Commissioner of Income Tax , Kolxx Vs. Dipak Kumar Singha Roy

  • Decided on : 15-Sep-2014

Court : Kolkata

... /- under section 40A(3) of the Income Tax Act, 1961 without appreciating the intention of the legislature and also not considering the materials available on records, thereby giving rise to perversity. (ii) Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in giving relief to the assessee by accepting the computation of profit under section 44AE of the Income Tax Act, 1961 transportation ... ORDER SHEET IN THE HIGH COURT AT CALCUTTA Special Jurisdiction (Income Tax) ORIGINAL SIDE ITAT No.75 of 2014 G.A.No.1982 of 2014 COMMISSIONER OF INCOME TAX , KOL-XX Versus DIPAK KUMAR SINGHA ROY BEFORE: The Hon'ble JUSTICE SOUMITRA PAL The Hon'ble JUSTICE DEBANGSU BASAK Date : 15th September, 2014. Mr.R.N.Bandopadhyay, Advocate with ...

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