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TMI Blog2011 (10) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... 148, the assessment order is not valid. Therefore, they declared that the assessment order is void ab initio. 2. Late C. Hagamilal, father of the assessee was carrying on business of money lending and pawn broking. A search under Section 132 of the Act was conducted in the premises at No. 1499, Thyagaraja Road, Mysore, by the Income Tax Department between 03.12.1990 and 07.12,1990, Subsequently he expired on 19.07.1991. His widow and legal heirs sought for a settlement by submitting an application under Section 245-C(1) on 07.10.1992. The said application was allowed and a final order of settlement was passed on 31.01.1994. Subsequently, none of the legal heirs filed any return of income. Therefore, in order to investigate into the affairs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty issued a letter dated 22.11.2007 bringing to his notice that inspite of several opportunities given, he has not filed a return and therefore, he proposes to pass the best judgment assessment. To that, the assessee sent a reply dated 29.11.2007 bringing to his notice that he has already filed returns on 19.11.2007. Thereafter the assessing authority proceeded to pass the assessment order as per Annexure 'A' dated 26.12.2007. Aggrieved by the said order, the assessee preferred an appeal to the Commissioner of Appeals contending that the order is passed under Section 143(3) of the Act and prior to the same, no notice was issued and therefore, the order of assessment is void ab initio. He also contested the claim on merits. The Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income as per return of income is Rs. 1,95,490/-. The third column is additions as discussed above is Rs. 57,19,491/-. Then, the interest is charged under Sections 234A, 234B and 234C and in fact, the interest is claimed only upto date of filing of the return. In the body of the order, at page 6 under the heading of interest of partners capital, it is stated as under:- "On the other hand, in the return of income filed by the assessee for the assessment year 2005-06, no such income representing interest on his capital parked with the firm has been offered for tax. In view of this, it would appear that the assessee has concealed the particulars of his income in the return of income filed for the assessment year 2005-06. At this juncture, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comply with all the terms of a notice issued under sub-section (1) of section 142 or having made a return, fails to comply with all the terms of a notice issued under sub-section (2) of section 143, the Assessing Officer after taking into account all the relevant materials which the Assessing Officer has gathered, shall after giving an opportunity to the assessee of being heard make the assessment of the total income or loss to the best of his judgment and determine the sum payable by the assessee or refundable to the assessee on the basis of such assessment. 7. From the aforesaid provision it is clear that if a return is made and thereafter, a notice is issued under Section 142(1) of the Act and if the assessee fails to comply with the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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