Assessment of income-presumptive basis or normal basis?

hii all...

FACTS:

An assessee is having a heavy motor vehicle (HMV)....He earned freight from various contractors during the year.

Now no tds is deducted if PAN no of the person concerned is provided.

QUESTIONS:

now I want to ask the following:

1: How the income should be assessed ??

                              either

as per sec 44AE i.e 5000 or more per month should be assessed his income?

                                or 

    gross receipts i.e freight minus expenditures??

2. Which ITR should be filed ? either ITR-4 or ITR-4S

pls clarify the doubt 

thanks