TMI Blog1976 (8) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... x Act, 1961 on the ground that the main source of income of the assessee was only share income from a firm and the entire books and evidence were with the department with the result that he could not produce the necessary materials. The Income Tax Officer fixed the hearing on 3rd August, 1974 and on the very same day passed an order rejecting the assessee s application. 3. On appeal the Appellate Assistant Commissioner held that the assessee did not have a reasonable opportunity to comply with the Income Tax Officer s notice and was also prevented by sufficient causes from complying with them. He, therefore, cancelled the ex-parte assessment as stated above. 4. Aggrieved by the said order of the Appellate Assistant Commissioner, the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... July, 1972 to the assessee:- "Please refer to you return of income filed for the assessment year 1970-71 and 1971-72. 2. You have claimed your status as that of HUF instead of individual. Please let in evidence substantiating your claim. 3. Please arrange to file the incomings and outgoings statements for the period relating to 1st April, 1969 to 31st March, 1970 and 1st April, 1970 to 31st March, 1971. 4. The details regarding your period of stay in India during these periods also be furnished. 5. Your case has been posted for hearing on 25th July, 1972 at 11 A.M. Please furnish above details on or before 25th July, 1972. Encl : Notice u/ss. 143(2) 142(1)." As is evident from the above letter the assessee had claimed the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer fixing the hearing on 13th Feb., 1974. Enclosing that notice the Income Tax Officer had sent the following letter to the assessee:- "In connection with your assessment proceedings you are requested to furnish me with the following details immediately. 1. Copy of your capital account, for the year ended 31st March, 1971 and 31st March, 1972. 2. Details regarding remittances received from Singapore in your name and/or received through M/s. Rajoo Bros. and credited in your account for the period ended 31st March, 1971 and 31st March, 1972. 3. List of sundry creditors and debtors for the above period with addresses. 4. Copies of accounts including capital accounts of the firms in which you are a partner for the above periods. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1974. On 2nd March, 1974 the assessee had sent a reply objecting to the proposal to make an ex-parte assessment. In particular he pointed out that the individual books were in the custody of the Deputy Director of Inspection, that only after receipt of the books he would be able to furnish his reply, that the Deputy Director of Inspection had asked him to come after a week and that, therefore, the assessee may be given time till the books are returned. In the concluding part of that letter a further request was made as under: "I request you to permit me to take copies from the books under your custody from Wednesday (6th March, 1974)". The Income Tax Officer completed the assessment under s. 144 on 20th March, 1974 observing as under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r has completed the petitioner s assessment for 1971-72 u/s. 144. The petitioner submits that his main source of income is only share income from firm and entire books and evidence were with the Department only and hence he could not produce further materials. In the circumstances the petitioner submits that he has been prevented by sufficient cause from complying with the notices. The petitioner therefore prays that the assessment made u/s. 144 may please be cancelled and a fresh judgment may be made according to law. Dated this 12th day of May, 1974." Thereupon the Income Tax Officer had passed the order dated 3rd August, 1973 under s. 146 of the Income Tax Act, which reads as under :- "The assessment in this case was completed on 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be said to be not in compliance with the notice under s. 139(2). As regards the alleged non-compliance with the Income Tax Officer s letter dated 22nd Feb., 1974 the assessee had in his reply dated 2nd March, 1974 set out the circumstances under which he was not able to give the explanation regarding the investments etc. by the lack of the books of account, account copies, etc., which were with the Dy. Director of Inspection and in respect of which he had sought permission to take copies. There is no finding in the said order passed by the Income Tax Officer under s. 146 to the effect that the objections raised by the assessee in his letter dated 2nd March, 1974 are either incorrect or false. Further as correctly observed by the Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X
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