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

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 ...

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 ...

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 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 ...

Aug 31 2007

Darshan Enterprises Vs. Income Tax Officer

  • Decided on : 31-Aug-2007

Court : Income Tax Appellate Tribunal (ITAT) - Pune

Reported in : (2008)113TTJ(Pune.)857

... ten and therefore, it was covered by the provisions of Section 44AE. that, in view of above, the assessee rightly computed its income on presumptive basis as per the provisions of Sections 44AF and 44AE of the Act. that the assessee, was under no obligation to declare an income higher than what was prescribed under Sections 44AF and 44AE, merely because the books of account were maintained. that the ... loss 2,90,504------------------------------------------------------------------------------ Total income 2,32,544 The AO, then, levied penalty of Rs. 1,79,059 on 27th April, 2004 under Section 271(1)(c), computed as under:------------------------------------------------------------------------------ Particulars Amount (Rs.)Tax on income as per revised return i.e. Rs. 2,32,544 89,529------------------------------------------------------------------------------Tax on income as per original return i.e. nil -------------------------------------------------------------------------------Tax on concealed income 89,529------------------------------------------------------------------------------Minimum penalty @ ... Section 44AF. that the number of trucks used by the assessee in the truck plying business was less than ten and therefore, it was covered by the provisions of Section 44AE. that, in view of above, the assessee rightly computed its income on presumptive basis as per the provisions of Sections 44AF and 44AE of the Act. that the assessee, was under no obligation to declare an income ...

Apr 04 2008

Commissioner of Income Tax Vs. Anil Kumar Arya

  • Decided on : 04-Apr-2008

Court : Punjab and Haryana

Reported in : (2008)217CTR(P& H)484; [2009]310ITR205(P& H)

... has filed the present appeal under Section 260A of the IT Act, 1961 (for short 'the Act') against the order dt. 31st Jan., 2007 passed by the Income-tax Appellate Tribunal, Delhi Bench (I), Delhi (for short 'the Tribunal'), in ITA No. 122/Del/2005 for the asst. yr. 2001-02 ... Section 44AE of the Act. The AO reached the conclusion that provisions of Section 44AE are not applicable in the case of the assessee and the assessee was required to maintain regular books of account and get these audited as per Sections 44AA and 44AB of the Act. The AO estimated the total Income ... Section 44AE is a special provision for computing the profits and gains from the business of plying, hiring or leasing of goods carriages. It provides that income from plying hiring, leasing goods carriages shall be computed at Rs. 2,000 per month for every vehicle owned by an assessee. The provisions of Section 44AE of the Act ... assessee was owning more than 10 trucks so as to verify the applicability of Section 44AE of the Act. The Tribunal found that the dispute is essentially factual in nature and as per the computation of income filed by the assessee, the total number of tankers owned by the ... Sections 44AA and 44AB of the Act. The AO estimated the total Income of the assessee on the basis of gross receipts earned by him by applying a net profit of 8 per cent and made additions vide his order dt. 27th Feb., 2004.4. Aggrieved against this order, the assessee filed an appeal before the Commissioner of Income-tax ...

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 ...

Dec 20 1994

Delhi Goods Transport Association Vs. The Central Board of Direct Taxe ...

  • Decided on : 20-Dec-1994

Court : Delhi

Reported in : 1995IAD(Delhi)185; 57(1995)DLT171

... sitting with Hon'ble Mr. Justice D.K. Jain in S.R.F. finance Ltd. v. Central Board of Direct Taxes; 1994 4 A D (Delhi) 489 where the scope of Section 194C of the Income Tax Act, 1961 (hereinafter referred to as the Act) has been elaborately and succinctly dealt with by my learned Brother. As I said before,in view of the fact ... by Section 44AD also. The purpose of Section 44AE isdifferent from the scope of Section 194C. Section 44AE provides an alternativemode of computing the income and paying the tax, while Section 194C providesfor the payer of the consideration to deduct a percentage from it for paying it tothe revenue. If excess amount is realised under Section 194C, the assessed canalways seek its refund, after computing the tax under Section 44AE. There ... 2) The petitioners challenge Circular No. 681 dated 8/3/1994 issued by the Central Board of Direct Taxes, directing the application of Section 194C of the Income Tax Act to several categories of persons, including the carrier of goods,like the 2nd petitioner. Section 194C provides for deduction of the prescribed percentage by the payer of the consideration and hand over the ... caused to a few individuals.Any law is bound to cause hardship to a Section of a society.(19) Section 194C of the Income Tax Act reads thus:'Payments to contractors and sub-contractors.-194-C.(1) Any person responsible for paying any sum to any resident thereafter in this Section referred to as the contractor) for carrying out any work (including supply ...

Oct 20 2004

Kaushik Medhi Vs. ITO

  • Decided on : 20-Oct-2004

Court : Guwahati

... Income Tax Act or the assessment should be restored back to the assessing officer for fresh adjudication as per provision of law?'N.S. Saini AM 13-1-2004In this appeal there is difference of opinion between the Merribers of the Bench, therefore, the following questions are referred to the Hon'ble President of the Tribunal under section 255(4) of the Income Tax Act, 1961 ... be made under section 143(3) and not under section 44AE. Therefore, we are of the opinion that under the circumstances of the case when the declared income was lower than that specified in section, supported by profit and loss account attached with the returns then the provisions of section 44AE have been wrongly invoked.'I find that the provisions of section 44AE and section 44AD are ... held that the assessee has not challenged the service of notice issued under section 142(1) at any stage?'Phool Singh J.M. (As Third Member)20-10-2004The Hon'ble President, Tribunal, exercising his powers under section 255(4) of the Income Tax Act, 1961, (hereinafter referred to as the 'Act'), has referred the following points of difference as framed by the respective ... for the statistical purposes.Reference under section 255(4) of The IT Act, 1961Dinesh K. Agarwal J.M.January 2004In this appeal there is difference of opinion between the Members of the Bench, therefore, the following questions are referred to the Hon'ble President of the Tribunal under section 255(4) of the Income Tax Act, 1961, for opinion of the Third Member. ...

Sep 18 1995

N.K. Mohnot Vs. Commissioner of Income-tax

  • Decided on : 18-Sep-1995

Court : Chennai

Reported in : [1995]216ITR844(Mad); (1996)IILLJ189Mad

... income-tax proceedings for which he is liable to be disqualified under section 288(5)(b) of the Income-tax Act, 1961, to represent an assessee under section 288(1) of the Income-tax Act. Article II. - That the said Sri Narendra Kumar Mohnot having his office in the name and style of 'Mohnot and Co.' at No. 38, College Road, Nungambakkam, Madras-6, has issued a forged audit certificate under section 44AE ... section 44AE, by using the name of one Sri. P. Ramanujam, Chartered Accountant at No. 162, Thambu Chetty Street, Madras-1. Thus, Sri Narendra Kumar Mohnot has committed grave misconduct for which he is liable to be disqualified under section 288(5)(b) of the Income-tax Act, 1961, to represent an assessee under section 288(1) of the Income-tax Act. ... the payment of taxes, before the income-tax authorities and falsely claimed credit for such payments. Thus, Sri Narendra Kumar Mohnot committed grave misconduct in connection with income-tax proceedings for which he is liable to be disqualified under section 288(5)(b) of the Income-tax Act, 1961, to represent an assessee under section 288(1) of the Income-tax Act. Article II. - ... tried to obtain income-tax refunds in the name of non-existent business concerns by producing bogus tax deduction certificates. Thus, Sri Narendra Kumar Mohnot has committed grave misconduct for which he is liable to be disqualified under section 288(5)(b) of the Income-tax Act, 1961, to represent an assessee under section 288(1) of the Income-tax Act. ' 3. In ...

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