By C. N. Vaze
Shailesh Kamdar
Jagdish T. Punjabi
Bhadresh Doshi
Chartered Accountants
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Part A: Reported
Decisions
28 (2010) 47 DTR (Pune)
(Trib) 513
Anil Ramgopal Mali (HUF) v.
ACIT
A.Y. : 2006-07. Dated :
31-12-2009
S. 44AE — Even when an
assessee is engaged in the composite business employing both own as well as the
hired vehicles from others, provisions of S. 44AE can be applied with respect to
business carried on through own vehicles.
Facts :
The assessee conducted
transportation business not only with two light commercial vehicles (LCVs) owned
by the assessee but also hired vehicles owned by others. The annual gross
receipts were Rs.91,33,192. The break-up of the turnover was : (a) on account of
two LCVs owned : Rs.63,93,234 and (b) other vehicles : 27,39,958. The Assessing
Officer levied penalty u/s.271B for not getting the books of accounts audited.
The CIT(A) also confirmed the order of penalty on the ground that the assessee,
who is engaged with the composite business employing both own as well as the
hired vehicles from others, is outside the ambit of S. 44AE.
Held :
The assessees with multiple
businesses are not barred entirely from availing the benefits of the provisions
of S. 44AE. The assessee with multiple businesses, which include the business of
plying etc. with their own goods carriage, are not only entitled to the benefits
of S. 44AE but also for the exclusion of the relevant turnover from the total
turnover of all the businesses of the assessee for the purpose of computation of
monetary limits for S. 44AB of the Act in view of the existence of S. 44AE(5).
