COMMISSIONER OF INCOME TAX, BIKANER Vs. PAWAN SHARMA

JUDGEMENT

(1.) This appeal u/s 260 A of Income Tax Act, 1961 ( for short "the Act") is directed against the order dated 21.9.11 of the Income Tax Appellate Tribunal(ITAT), Jodhpur Bench,Jodhpur passed in ITA No.600/JDP/2008, whereby the appeal filed by the respondent-assessee against the order dated 28.8.08 of Commissioner of Income Tax(Appeal) [CIT(A)], Jodhpur allowing the appeal preferred by the respondent-assessee against the assessment order dated 28.12.07 passed by the Assessing Officer(AO) for assessment year 2005-06 and deleting the addition of Rs.34,14,910/-, stands dismissed.

(2.) Briefly the facts giving rise to the appeal are that the assessee runs a proprietorship concern namely, M/s Akash Ganga Cargo Movers, which is engaged in the work of transportation of the goods. The assessee used to transport insulators which were procured from local firms namely, Premier Sanitaryware, Rani Bazar, Bikaner and Taruna Dec Home Pvt. Ltd., Bikaner. The assessee does not own any truck and therefore, he had used trucks available in the market for transportation of the goods. During the relevant assessment year assessee filed return of income on 26.10.05 declaring total income of Rs.3,35,440/-. The return was processed by the AO under Section 143(3) of the Income Tax Act, 1961 ('the Act').

(3.) During the relevant assessment year, the assessee has received freight charges a sum of Rs.1,23,41,750/-, against which a sum of Rs.1,18,97,227/- was paid as freight. In the balance sheet, outstanding liabilities of Rs. 34,14,910/- were shown. On query being made by AO, the assessee furnished the details of outstanding liabilities showing these to be liabilities representing outstanding truck freights. The AO collected the addresses of the truck owners from the Regional Transport Authority and issued summon to them. The statement of some of the truck owners were recorded and out of them a few were subjected to cross examination on behalf of the assessee.