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2018 (5) TMI 804 - ITAT KOLKATAScope of section 144 proceedings - Best judgment assessment - undisclosed income including the sum received as fee from students allegedly swindled by its ex-director - Held that:- As quote this tribunal Third Member decision in Pragati Engineering Corporation vs ITO [2012 (12) TMI 1 - ITAT, LUCKNOW ]considering all the relevant law to affirm both the lower authorities’ action proceeding u/s 144 of the Act against the assessee therefore. Learned counsel has also quoted many judicial precedents about ambit and the scope of section 144 proceedings in specific circumstances. The same are found to be not applicable in peculiar facts and circumstances before us since the assessee had failed to submit any response on its part in producing the relevant books of account forming foundation of its documents filed before the Assessing Officer who had no other option but to finalise the relevant assessment as per law. We therefore see no reason to accept assessee’s instant former substantive ground. The same is accordingly rejected. Addition on swindled cash - Held that:- We find that there is no question about the fact that the assessee had not recorded the income received from students despite the same having duly received in the relevant previous year. There is no quarrel therefore so far as the receipt of the sum in question is concerned. Coming to the alleged swindling of its ex-director, we find that the assessee’s claim does not satisfy the basic conditions of a note being put up in the relevant schedule based on a reasonable assumption as per books as held in Chainrup Sampatram vs CIT [1953 (10) TMI 2 - SUPREME Court]. We thus see no reason on facts to interfere with both the lower authorities findings making the impugned addition of ₹ 2,45,00,000/- on account of assessee’s failure in proving that Shri Mitra had swindled cash sum of ₹ 70 lakhs and the other amount of ₹ 1,75,00,000/- (supra). The assessee fails in its latter substantive ground as well.
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