TMI Blog1926 (1) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... The learned Government Advocate states that he is unable to support this contention which obviously has no force. The Commissioner's order still subsists and has not been set aside and it would be opposed to all ideas of congruity, legal or other, to hold that an order can be challenged on the ground that it should never have been issued. The disputed assessment, which is confined to an item of ₹ 10,000 in respect of interest, was in respect of the year 1922-23. The return authorised by section 22 of the Act was made on the 9th September 1922, and that showed an income from interest of only ₹ 866. On the 12th February 1923, in obedience to an order issued under section 22, clause (4) the assessee produced his accounts bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is open to the Assessing Officer to accept it and to base the assessment entirely upon it. If he is not prepared to accept it forthwith, he may issue notice to the assessee to appear before him and justify his return by his accounts. If the assessee, although he has furnished the return, fails to produce his accounts in support of that return he is placed in the same position as if he had made no return at all. If, however, he has made a return and has produced his accounts in obedience to an order under section 22(4), the Income-tax Officer is not justified in rejecting the return and the accounts and in assessing on a rule of thumb until he has given notice to the assessee under section 23(2) of the Act to appear before him and justify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that, in the opinion of the Income-tax Officer, the income, profits and gains cannot properly be deduced therefrom, then the computation shall be made upon such basis and in such manner as the Income-tax Officer may determine. Now, the Income-tax Officer's application of this section was as follows :- As regards income from interest the Inspector's estimate seems to me a little high. My own estimate is about ₹ 10,000. We do not regard this wholly arbitrary assessment as one justified by section 13; for the Income-tax Officer does not lay down any basis, nor does he indicate how he arrives at his estimate of ₹ 10,000. Had he found that the sums loaned were a certain figure, and had he calculated a flat rate upon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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