Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2009 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (9) TMI 524 - HC - Income TaxAssessment- M/s. H. P. State Forest Corporation is engaged in the business of purchase, conversion and sale of timber. The assessee filed returns of income for the assessment years 1993-94 and 1994-95 declaring income of Rs. 58 lakhs and Rs. 57 lakhs respectively. These returns were filed on estimate basis since the accounts of the assessee had not been audited by the office of the Comptroller and Accountant General. The Assessing Officer treated these returns to be "non est" as the audited accounts were not annexed with the returns and he issued notices under section 148 of the Income-tax Act for filing fresh returns. Fresh returns were admittedly not filed and thereafter the Assessing Officer completed the assessments for both the assessment years in exercise of the powers vested in him under section 144 of the Act by using the best judgment method. He assessed the income for the two years at Rs. 1.40 crores and Rs. 1.50 crores respectively. Commissioner (Appeals) confirm the action of the Assessing Officer. Income-tax Appellate Tribunal went on to hold that the income to be assessed by the Assessing Officer should not be less than the income returned by the assessee for both the assessment years in his original returns which had been treated as "non est". Held that- when the Tribunal was directing assessment de novo, no fetters as to the upper or lower limit of income to be assessed could have been placed by the Tribunal on the Assessing Officer. He had to go through the audited accounts, apply his mind and frame the assessment afresh in accordance with the duly audited accounts placed on records. The Tribunal’s directions, firstly, to assess the income at a figure not less than that declared in the assessee’s returns and upon the rectification application, to assess the income at a figure not higher than that assessed under section 144, were unsustainable.
|