Sh Jai Praksah Sharma, v. The ITO, Dewas

IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH INDORE BEFORE SHRI JOGINDER SINGH J.M. AND SHRI R.C.SHARM A A.M. PAN NO. : ATLPS9866E I.T.A.NO. 574 & 575 / IND /20 0 5 A.Y. : 1996 - 97 & 1997 - 98 JAI PRAKASH SHARMA INCOME TAX OFFICER PROP. M/S. A JAI TRASNPORT CO. VS DEWAS 30 CIVIL LINES DEWAS APPELLANT RESPONDENT APPELLANT BY : S/SHRI J.N. SHARMA & JAIPRAKASH SHARMA RESPONDENT BY : SHRI ARUN DEWAN SR. DR DATE OF HEARING : 1 5 .12.2011 DATE OF PRONOUNCEMENT : 28 .12.2011 O R D E R PER R. C. SHARMA A.M. THESE ARE APPEALS FILED BY THE ASSESSEE AGAINST THE ORDERS OF CIT(A) BOTH DATED 31.3.2005 FOR THE ASSESSMENT Y EARS 1996- 97 AND 1997-98. -: 2: - 2 2. GROUNDS TAKEN BY THE ASSESSEE IN I.T.A.NO. 574/IND/2005 READS AS UNDER : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN : I) REJECTING THE GROUND THAT THE ASSESSMENT ORDER WAS ILLEGAL AND WITHOUT JURISDICTION. II) IN MAINTAINING THE ADDITION OF RS. 8 38 786/- IN RESPECT OF UNEXPLAINED INVESTMENT IN HOUSE PROPERTY IN THE NAME OF APPELLANTS WIFE ON PROTECTIVE BASIS IN THE HANDS OF THE APPELLANT. III) IN DIRECTING THE AO U/S 153(3) OF THE INCOME- TAX ACT 1961 TO INITIATE APPROPRIATE STEPS FOR CONSIDERING SUCH INVESTMENT IN THE HANDS OF SMT. LATA DEVI SHARMA BY ISSUE OF NOTICE U/S 148. IV) IN MAKING OBSERVATIONS REGARDING ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 1998-99 (WHICH WAS NOT THE SUBJECT MATTER OF APPEAL AT ALL) THAT IT WAS NOT LEFT OPEN TO THE DISCRETION OF THE PRESENT AO TO TAKE ANY OTHER VIEW IN THE -: 3: - 3 MATTER OF INVESTMENT IN THE CONSTRUCTION OF THE HOUSE THEN WHAT WAS TAKEN BY HIS PREDECESSOR IN OFFICE. V) IN GETTING ISSUED NOTICE U/S 148 FOR THE ASSESSMENT YEAR 1998-99 ON 30.03.2005 DURING PENDENCY OF THIS APPEAL WHICH WAS DISPOSED OFF ON 31.03.2005 DURING PENDENCY OF THIS APPEAL WHICH WAS DISPOSED OFF ON 31.03.2005. VI) IN CONFIRMING THE ADDITION OF RS. 2 80 800/- U/S 68 OF THE ACT BY OBSERVING THAT PROVISIONS OF SECTION 69A ARE ATTRACTED INSTEAD OF SECTION 8 APPLIED BY THE ASSESSING OFFICER. VII) IN ENHANCING THE INCOME FROM BUS PLYING FROM RS. 43 330/- TO RS. 2.50 LAKHS (AFTER CONSIDERING THE CLAIM OF DEPRECIATION AND PROVISIONS OF SECTION 28(2)) WITHOUT ADHERING TO THE PROVISIONS OF SECTION 251(2) AND THAT TOO WITHOUT PROVIDING ANY OPPORTUNITY TO THE APPELLANT. -: 4: - 4 3. APART FROM THE ABOVE THE ASSESSEE VIDE APPLICATION DATED 16.07.2010 HAS PRAYED BEFORE US TO ADMIT THE ADDITIONAL GROUND OF APPEAL WHICH READS AS UNDER : - ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN ASSUMING JURISDICTION TO ISSUE STATUTORY DIRECTIONS TO THE A O U/S 251(2) R/W EXPLANATION THERETO TO ISSUE NOTICE S U/S 148 FOR THE ASSESSMENT YEARS 1992-93 TO 1995- 96 WITHOUT FIRST COMPLYING WITH THE EXPRESS REQUIREMENTS CONTAINED IN THE SAID SANCTION AND EXPLANATION. 4. GROUNDS TAKEN BY THE ASSESSEE IN I.T.A.NO. 575/IND/2005 READS AS UNDER : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN : I) REJECTING THE GROUND THAT THE ASSESSMENT ORDER WAS ILLEGAL AND WITHOUT JURISDICTION. II) IN ENHANCING THE INCOME FROM BUS PLYING FROM RS. 37 250/- TO RS. 2.50 LAKH ( AFTER -: 5: - 5 CONSIDERING THE CLAIM OF DEPRECIATION AND PROVISIONS OF SECTION 28(2) ) WITHOUT ADHERING TO THE PROVISIONS OF SECTION 251(2) AND THAT TOO WITHOUT PROVIDING ANY OPPORTUNITY TO THE APPELLANT. III) IN MAINTAINING THE ADDITION OF RS. 6 25 938/- IN RESPECT OF UNEXPLAINED INVESTMENT IN THE HOUSE PROPERTY IN THE NAME OF APPELLANTS WIFE ON PROTECTING BASIS IN THE HANDS OF THE APPELLANT. 5. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORDS PERUSED. 6. FIRST GRIEVANCE OF THE ASSESSEE IN THE ASSESSMENT Y EAR 1996-97 PERTAINS TO MAINTAINING ADDITION OF RS. 8.3 8 LAKHS IN RESPECT OF UNEXPLAINED INVESTMENT IN HOUSE PROPERTY . FROM THE RECORD WE FOUND THAT THE AO HAS MADE THIS ADDI TION IN ASSESSEES HANDS AS HE COULD NOT EXPLAIN THE INVEST MENT MADE IN THE HOUSE WHICH WAS STANDING IN THE NAME OF HIS WIFE. THE LD. CIT(A) UPHELD THE ADDITION ON PROTECTIVE BASIS IN ASSESSEES -: 6: - 6 HANDS BECAUSE HOUSE WAS STANDING IN THE NAME OF HIS WIFE AND SHE WAS LEGAL OWNER OF HOUSE. THE LD. CIT(A) UP HELD THE ADDITION ON PROTECTIVE BASIS IN ASSESSEES HANDS AN D DIRECTED THE AO TO ISSUE NOTICE U/S 148 IN THE NAME OF HIS W IFE SMT. LATA DEVI SHARMA SINCE HOUSE WAS STANDING IN HER N AME. WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF CIT(A) IN SO FAR AS HOUSE WAS IN THE NAME OF HIS WIFE AND BOTH ARE SEPA RATE ENTITY AND WIFE IS REQUIRED TO EXPLAIN THE SOURCE OF AMOUN T INVESTED IN CONSTRUCTION OF THE HOUSE. ACCORDINGLY GROUND T AKEN WITH REGARD TO MAINTAINING ADDITION ON PROTECTIVE BASIS BY CIT(A) IS HEREBY DISMISSED. 7. THE ASSESSEE IS ALSO AGGRIEVED FOR CONFIRMING ADDIT ION OF RS. 2 80 800/- U/S 68 OF INCOME-TAX ACT 1961. C ONTENTION OF THE LD. AUTHORIZED REPRESENTATIVE WAS THAT CONFI RMATION LETTERS WERE FILED IN RESPECT OF THESE CREDITS AND STATEMENTS OF SOME OF THE CREDITORS WERE ALSO RECORDED BY THE ASS ESSING OFFICER. THOSE CREDITORS WHO COULD NOT ATTEND THE O FFICE DUE TO HARVESTING SEASON HAD FILED THEIR AFFIDAVITS CONFIR MING THE ADVANCES GIVEN TO THE ASSESSEE. IN BRIEF THE FACT E MERGED THAT NONE OF THE CREDITORS DENIED TO HAVE ADVANCED THE L OAN TO THE -: 7: - 7 ASSESSEE. BUT THE AO ON THE BASIS OF HIS PREJUDICED CONCLUSIONS BASED ON PRESUMPTIONS ASSUMPTIONS EST IMATIONS AND SURMISES ADDED THE TOTAL AMOUNT OF RS. 2 80 50 0/- AS UNEXPLAINED AND THAT TOO UNLAWFULLY U/S 68 OF THE I NCOME-TAX ACT 1961. 8. AS PER LD. AUTHORIZED REPRESENTATIVE THERE WERE IN ALL 15 CREDITORS IN THE LIST TOTALLING TO RS. 2 80 500/ - AND OUT OF THESE ONLY THREE BELONGED TO DEWAS PROPER AND THE R EST BELONGED TO THE PLACES OUT OF DEWAS. EVEN THEN THE ASSESSEE MADE ALL POSSIBLE EFFORTS TO COLLECT CONFIRMATIONS LETTERS AND/OR AFFIDAVITS IN RESPECT OF CREDITORS AND PRODUCED 5 P ERSONS FOR EXAMINATION BEFORE THE AO CREDITOR-WISE DETAILS ARE GIVEN BELOW :- A) SHRI KRISHNADAS S/O GIRDHARIDAS BAIRAGI VILLAGE KALLUKHEDI THE SONKATECH DIST. DEWAS RS. 19 000/- CONFIRMATION LETTER FILED ON 20.01.1999. IN THE STATEMENT OF OATH RECORDED BY THE ASSESSING OFFICER SHRI KRISHNADAS BAIRAGI -: 8: - 8 HAS CATEGORICALLY STATED TO HAVE ADVANCED RS. 19 000/- TO THE ASSESSEE. COPY OF CONFIRMATION LETTER PAPER BOOK PAGE 15. COPY OF STATEMENT PAPER BOOK PAGE 16 TO 22 B) DR. SHRI ANIL KUMAR S/O RAMPADARATH SINGH SOLANKI VILLAGE A BARODIA THE. BHUJALPUR DIST. SHAJAPUR RS.19 000/-. CONFIRMATION LETTER FILED ON 20 TH JANUARY 1999. HE HAS FILED AN AFFIDAVIT VERIFYING THAT HE HAD ADVANCED RS. 19 000/- TO THE ASSESSEE ON 1.6.95. HE HAD ALSO COME TO DEWAS FOR GIVING HIS STATEMENT BEFORE THE AO BUT DUE TO THE NON-AVAILABILITY OF THE ASSESSEE HE COULD NOT COME TO THE OFFICE. COPY OF CONFIRMATION LETTER P.B.PAGE 23 COPY OF AFFIDAVIT PAPER BOOK PAGE 24 & 25. -: 9: - 9 C) RADHESHYAM S/O RAMSINGH PATEL AGRICULTURIST VILLAGE DAVLI TEHSIL TONK KHURD DISTT. DEWAS RS. 19 000/- CONFIRMATION LETTER FILED ON 20.01.99. HE HAS ALSO FILED AN AFFIDAVIT STATING THAT HE IS AGRICULTURIST AND OUT OF AGRICULTURAL INCOME HE HAD ADVANCED RS. 19 000/- TO THE ASSESSEE ON 2 ND JUNE 1995. DUE TO HARVESTING SEASON HE COULD NOT ATTEND BEFORE THE AO. COPY OF CONFIRMATION LETTER P.B.PAGE 26 COPY OF AFFIDAVIT PAPER BOOK PAGE 27 & 28. D) RAJENDRA KUMAR GANGAPRASAD SHARMA P.W.D. QUARTERS ALIRAJPUR DISTT. JHABUA RS. 19 000/-. CONFIRMATION LETTER FILED ON 20 TH JANUARY 1999. -: 10: - 10 HE WAS PRODUCED BY THE ASSESSEE BEFORE THE AO FOR EXAMINATION. IN HIS STATEMENT ON OATH HE HAS ACCEPTED TO HAVE ADVANCED RS. 19 000/- TO THE ASSESSEE. HE RUNS A TYPING INSTITUTIONS IN ALIRAJPUR WHICH IS THE MAIN CITY OF JHABUA DISTT. AND NOT A SMALL PLACE AS MENTIONED BY THE ASSESSING OFFICER. COPY OF CONFIRMATION LETTER P.B.PAGE 29 COPY OF AFFIDAVIT PAPER BOOK PAGE 30 TO 33. E) MAHESHCHANDRA BADRIPRASAD SHARMA UDASAI KA ADDA INDORE GATE UJJAIN RS. 19 000/- CONFIRMATION LETTER FILED ON 20 TH JANUARY 1999. HE WAS PRODUCED BEFORE THE AO FOR EXAMINATION ON 19 TH MARCH 1999 AND WAITED FOR AOS CALL FROM 11.10 A.M. TO 10.30 P.M. IN THE INCOME TAX OFFICE BUT -: 11: - 11 WAS NOT CALLED BY THE ASSESSING OFFICER. HENCE HE FILED AN AFFIDAVIT CONFIRMING THE ADVANCEMENT OF RS. 19 500/- TO THE ASSESSEE. COPY OF CONFIRMATION LETTER P.B.PAGE 34 COPY OF AFFIDAVIT PAPER BOOK PAGE 35 & 36. F) OMPRAKASH HARIPRASAD TIWARI AGRICULTURIST VILLAGE BARCHAKHURD TEHSIL KHATEGAON DIST. DEWAS RS. 18 500/-. CONFIRMATION LETTER FILED ON 20.01.1999. COPY OF CONFIRMATION LETTER P.B.PAGE 23 COPY OF AFFIDAVIT PAPER BOOK PAGE 24 & 25. IN HIS AFFIDAVIT THE CREDITOR HAS STATED THAT HE DID COME TO DEWAS TO APPEAR BEFORE THE AO BUT DUE TO NON-AVAILABILITY OF THE ASSESSEE ON 26 TH MARCH 1999 HE COULD NOT ATTEND THE OFFICE. HE HAS ALSO ACCEPTED TO HAVE ADVANCED RS. 18 500/- -: 12: - 12 TO THE ASSESSEE DURING THE RELEVANT PREVIOUS YEAR. COPY OF CONFIRMATION LETTER P.B.PAGE 37 COPY OF AFFIDAVIT PAPER BOOK PAGE 38 *& 39. G) SATISH S/O GANESH SHANKAR SHARMA DEVELOPMENT OFFICER LIC OF INDIA 47 CIVIL LINES SADASHIV NAGAR DEWAS. CONFIRMATION LETTER FILED ON 20.01.1999 RS. 17 000/-. HIS STATEMENT ON OATH WAS RECORDED BY THE ASSESSING OFFICER. HE HAS CONFIRMED TO HAVE ADVANCED RS. 17 000/- TO THE ASSESSEE DURING THE RELEVANT PREVIOUS YEAR. COPY OF CONFIRMATION LETTER P.B.PAGE 40 COPY OF STATEMENT PAPER BOOK PAGE 41 TO 45. -: 13: - 13 H) SAJJAN SINGH S/O RAMSINGH SANDHAW AGRICULTURIST. VILLAGE DEHR TEHSIL SONKATCH DIST. DEWAS RS. 18 000/-. CONFIRMATION LETTER FILED ON 20 TH JANUARY 1999. HIS STATEMENT ON OATH WAS RECORDED BY THE ASSESSING OFFICER AND HE HAS CONFESSED TO HAVE ADVANCED RS. 18 000/- TO THE ASSESSEE DURING THE RELEVANT PREVIOUS YEAR. COPY OF CONFIRMATION LETTER P.B.PAGE 46 COPY OF STATEMENT PAPER BOOK PAGE 47 TO 49. I) BHARATBHUSHAN S/O RAMGOVINDJI SHARMA NEAR BHERUNALA UJJAIN RS. 18 000/- CONFIRMATION LETTER FILED ON 20.01.1999. THIS CREDITOR COULD NOT BE CONTACTED BY THE ASSESSEE AS HE WAS LIVING AT UJJAIN AND WAS NOT AVAILABLE AT -: 14: - 14 THE TIME WHEN ASSESSEE WENT TO CONTACT HIM. COPY OF CONFIRMATION LETTER P.B.PAGE 50 COPY OF AFFIDAVIT PAPER BOOK PAGE 51 TO 57. J) SHRI JAGDISHCHANDRA S/O SHIVNARAYAN DWIVEDI VILLAGE ARIAWADA TEHSIL BAGLI DEWAS RS. 19 500/-. CONFIRMATION LETTER FILED ON 20.01.1999. THIS CREDITOR HAS FILED AN AFFIDAVIT AND HAS ACCEPTED TO HAVE ADVANCED RS. 19 500/- TO THE ASSESSEE. HE WAS ALSO PRESENT IN THE INCOME TAX OFFICE ON 23.02.1999 FROM 11.00 A.M. TO 8.30 P.M. BUT WAS NOT CALLED BY THE ASSESSING OFFICER FOR EXAMINATION. COPY OF CONFIRMATION LETTER P.B.PAGE 58 COPY OF AFFIDAVIT PAPER BOOK PAGE 59 & 60. -: 15: - 15 K) RAMESHCHANDRA S/O AMBARAM DWIVEDI VILLAGE ARIAWADA TEHSIL BAGLI DIST. DEWAS RS. 18 500/-. CONFIRMATION LETTER FILED ON 20.01.1999. THIS CREDITOR HAS FILED AN AFFIDAVIT AND HAS ACCEPTED TO HAVE ADVANCED RS. 18 500/- TO THE ASSESSEE. HE WAS ALSO PRESENT IN THE INCOME TAX OFFICE ON 23.02.1999 FROM 11.00 A.M. TO 8.30 P.M. BUT WAS NOT CALLED BY THE ASSESSING OFFICER FOR EXAMINATION BY THE AO. COPY OF CONFIRMATION LETTER P.B.PAGE 61 COPY OF AFFIDAVIT PAPER BOOK PAGE 62 & 63. L) JAGDISH S/O SEWARAM AGRICULGTURIST VILLAGE PANDAJAGIR DIST. DEWAS RS. -: 16: - 16 18 500/-. CONFIRMATION LETTER FILED ON 20.01.1999. THIS CREDITOR WAS PRESENT IN THE INCOME TAX OFFICE ON 26.03.1999 FROM 11.00 A.M. TO 9.30 P.M. BUT WAS NOT CALLED FOR EXAMINATION BY THE ASSESSING OFFICER. HE HAS THEREFORE FILED AN AFFIDAVIT CONFIRMING THE ADVANCE TO THE ASSESSEE. COPY OF CONFIRMATION LETTER P.B.PAGE 64 COPY OF AFFIDAVIT PAPER BOOK PAGE 65 & 66. M) MANOJ KUMAR RAMAKANT SHUKLA 96 RAMNAGAR DEWAS RS.19 000/-. CONFIRMATION LETTER FILED ON 20.01.1999. STATEMENT ON OATH WAS RECORDED BY THE ASSESSING OFFICER WHEREIN THE CREDITOR HAS ACCEPTED TO HAVE ADVANCED RS. 19 000/- TO THE ASSESSEE. BUT THE AO HAS NOT BELIEVED HIS STATEMENT. COPY OF CONFIRMATION LETTER P.B.PAGE 67 -: 17: - 17 COPY OF AFFIDAVIT PAPER BOOK PAGE 68 TO 74. N) SHRI BADRIPRASAD RAMLALJI SHARMA BUSINESS UDASI-KA-ADDA INDORE GAATE UJJAIN RS.19 000/-. HIS AFFIDAVIT WAS FILED ON 23.03.1999 WITH THE LETTER. HE ATTENDED THE INCOME TAX OFFICE ON 19.03.1999 AND REMAINED THERE FROM 11.00 A.M. TO 10.30 P.M. BUT WAS NOT CALLED FOR EXAMINATION BY THE ASSESSING OFFICER. HE HAS CONFIRMED TO HAVE ADVANCED RS.19 000/- TO THE ASSESSEE. COPY OF AFFIDAVIT PAPER BOOK PAGE 75 & 76. O) SHRI OMPRAKASH RADHAGANJ DEWAS RS.19 000/-. -: 18: - 18 THE CREDITOR HAS EXPIRED. STATEMENT ON OATH HIS SON SHRI RISHIKUMAR SONI WAS RECORDED BY THE ASSESSING OFFICER HAS CONFIRMED THE CREDIT OF RS. 19 000/- TO THE ASSESSEE BY HIS LATE FATHER SHRI OMPRAKASH SONI. COPY OF STATEMENT OF OMPRAKASH PAPER BOOK PAGE 77 TO 80. 9. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS AND FOUND THAT THE ASSESSEE HAS FILED CONFIRMATION FROM ALL THE CREDITORS AND IN RESPECT OF SOME OF THE CREDITORS AFFIDAVIT WAS ALSO FILED BEFORE THE AO. SOME OF THE CREDITORS WER E ALSO PRODUCED BEFORE THE AO FOR RECORDING THEIR STATEMEN T. THE LD. AUTHORIZED REPRESENTATIVE DREW OUR ATTENTION IN RES PECT OF EIGHT CREDITORS AND FIVE PERSONS WHO WERE PRODUCED BEFORE THE AO FOR RECORDING THEIR STATEMENTS. HOWEVER THE AO DID NOT AGREE WITH ASSESSEES CONTENTION AND MADE THE ADDIT ION WHICH WAS CONFIRMED BY THE LD. CIT(A). FROM THE RECORD W E FOUND THAT EVEN THOUGH THE CREDITORS ATTENDED THE OFFICE OF THE AO. THE AO DID NOT CALL CREDITORS NOR EXAMINED THEM. TH US THE -: 19: - 19 CONTENTION OF THE LD. AUTHORIZED REPRESENTATIVE THA T ALL THE CREDITS WERE GENUINE COULD NOT BE ESTABLISHED. KEEP ING IN VIEW THE TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE AND MORE SO IN THE INTEREST OF JUSTICE THIS ISSUE IS R ESTORED BACK TO THE FILE OF AO FOR DECIDING AFRESH AFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE IN THIS REGARD. 10. NEXT GRIEVANCE OF THE ASSESSEE RELATES TO THE DIREC TION ISSUED BY THE LD. CIT(A) TO THE AO FOR ISSUE OF NOT ICE U/S 148 FOR THE ASSESSMENT YEARS 1992-93 TO 1995-96. 11. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS AND FOUND FROM RECORD THAT DURING THE COURSE OF PASSING APPELLATE ORDER ON 31 ST MARCH 2005 THE LD. CIT(A) HAS ISSUED A DIRECTION TO THE AO FOR REOPENING THE ASSESSMENT BY ISSUE OF NOTICE U/S 148 FOR THE ASSESSMENT YEARS 1992-93 TO 1995-96. AS ON 31 ST MARCH 2005 THE TIME LIMIT FOR REOPENING THE ASSESSMENT FOR ASSESSMENT YEAR 1992-93 TO 1995-96 H AVE ALREADY BEEN EXPIRED AS PER PROVISIONS OF SECTION 1 49(1). WE ALSO FOUND THAT THERE IS NO JUSTIFIABLE REASONS ASS IGNED BY THE LD. CIT(A) FOR DIRECTING THE AO TO REOPEN THE ASSES SMENT FOR THESE YEARS. AS THE TIME LIMIT PRESCRIBED FOR ISSUE OF NOTICE U/S -: 20: - 20 148 FOR THE ASSESSMENT YEAR 1992-93 TO 1995-96 HAVE ALREADY BEEN EXPIRED ON 31.3.95 WE DO NOT FIND ANY JUSTIF ICATION IN THE DIRECTION SO ISSUED BY THE LD. CIT(A). 12. IN BOTH THE ASSESSMENT YEARS THE ASSESSEE IS AGGRIEVED FOR ENHANCEMENT OF INCOME FROM BUS PLYING . IN THE ASSESSMENT YEAR 1996-97 THE LD. CIT(A) HAS ENHANCE D INCOME FROM BUS PLYING FROM RS. 43 330/- TO RS. 2.50 LAKHS AND IN THE ASSESSMENT YEAR 19970-98 RS. 37 250/- TO RS.2.5 0 LAKHS. 13. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS AND FOUND THAT THE ASSESSEE WAS HAVING INCOME FROM BUS PLYING. AFTER CALLING FOR ALL THE RECORDS THE AO HAS ACCEP TED THE INCOME RS. 43 330/- IN THE ASSESSMENT YEAR 1996-97 AND RS. 37 250/- IN THE ASSESSMENT YEAR 1997-98. BOTH THESE INCOME HAVE BEEN ENHANCED BY THE LD. CIT(A) TO RS. 2.50 LA KHS. FROM THE RECORD WE FOUND THAT SINCE ASSESSMENT YEAR 199 2-93 THE ASSESSEE WAS SHOWING INCOME FROM BUS PLYING ON THE BASIS OF BUSES OWNED BY HIM ROUTE PERMIT OBTAINED ROAD TAX PAID AND CAPACITY OF BUSES. IN ALL THESE ASSESSMENT YEARS RI GHT FROM ASSESSMENT YEAR 1992-93 THE AO HAD ACCEPTED THE IN COME FROM BUS PLYING. WITHOUT ASSIGNING COGENT REASONS THE LD. -: 21: - 21 CIT(A) HAS ENHANCED THE INCOME FROM BUS PLYING TO T HE EXTENT OF RS. 2.50 LAKHS. AFTER GOING THROUGH THE DETAILED DOCUMENTS PLACED ON RECORD WITH REGARD TO THE ROUTE FOR WHICH PERMIT WAS ISSUED TO HIM ROAD TAX PAID AND CAPACITY OF BUSES WE THINK IT APPROPRIATE TO ESTIMATE THE INCOME FROM BUS PLYING AT RS. 1 LAKH IN EACH OF THE ASSESSMENT YEAR 1996-97 AND 199 7-98 IN PLACE OF INCOME DECLARED BY THE ASSESSEE AT RS. 43 030/- AND RS. 37 350/-. WE DIRECT ACCORDINGLY. 14. IN THE RESULT BOTH THE APPEALS ARE ALLOWED IN PART IN TERMS INDICATED HEREINABOVE. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 28 TH DECEMBER 2011. (JOGINDER SINGH) ( R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 28 TH DECEMBER 2011. CPU* 2123