TMI Blog1975 (5) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed to income-tax for the assessment year 1956-57, on a turnover of Rupees fifteen lakhs by the Income-tax Officer by his order dated January 22, 1958. The Income-tax Officer did not accept the return filed by the assessee and the books of account produced by it and made a best judgment assessment. The turnover so assessed was reduced by the Appellate Assistant Commissioner and further reduced by the Appellate Tribunal. On March 31, 1965, the Income-tax Officer issued a notice under section 148 of the Income-tax Act, 1961, stating that he had reasons to believe that income chargeable in respect of the assessment year 1956-57 had escaped assessment within the meaning of section 147 of the Act and directing the assessee to file a return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duced by the assessee, all the conditions for invoking the jurisdiction under section 147(a) were present. This was also the view taken by the Division Bench. It appears that the Income-tax Officer had written a detailed order in making his best judgment assessment. Having found out all about the drafts which were not mentioned in the assessee's books of account, the Income-tax Officer gave the partners of the firm opportunity to explain the drafts. Referring to the statement of one of the partners, Shri Om Parkash, the Income-tax Officer observed in his order : " He has said that the drafts which were sent by him relating to Messrs. Gemini Leather Stores were entered in the books of the firm while other drafts which he has made would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due from an assessee, require to know all the facts which help him in coming to the correct conclusion. From the primary facts in his possession, whether on disclosure by the assessee, or discovered by him on the basis of the facts disclosed, or otherwise, the assessing authority has to draw inferences as regards certain other facts ; and ultimately from the primary facts and the further facts inferred from them, the authority has to draw the proper legal inferences......Once all the primary facts are before the assessing authority, he requires no further assistance by way of disclosure. It is for him to decide what inferences of facts can be reasonably drawn and what legal inferences have ultimately to be drawn. It is not for somebody els ..... X X X X Extracts X X X X X X X X Extracts X X X X
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