How to treat the hire charge income from hitachi proclainer

Hello,

Section 44AE is applicable for goods carriages. Earthmoving machinery(JCB) is meant for excavation of earth, lifting of heavy materials etc. Though it is registered under the Motor Vehicles Act, 1988 it cannot be construed as goods carriage vehicle.

In Gaylord Constructions v. ITO (2009) 175 Taxman 99 (Mag.) (Cochin)(Trib) it was held that the earthmoving machinery is not covered by the provisions of section 44AE. The tribunal took in aid the Circular No.684 dated 06-03-1994 and held that section 44AE could not be applied for computing and adopting presumptive income from the earth moving machinery.