9911796707
TMI Blog1973 (7) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... among other things, that during the relevant accounting year the petitioner had constructed a building whose estimated cost came to Rs. 40,000. The respondent estimated the petitioner's professional income for the year at Rs. 25,000 ; and he estimated the balance of Rs. 15,000 to be the income from other sources. That is how the assessment was made. This petition has been filed to quash the said order of assessment on the ground that the addition of Rs. 15,000 from other sources was made without giving the petitioner an opportunity for being heard. It is necessary to notice some of the provisions of the Act in order to appreciate the rival contentions advanced by counsel of both parties. Section 142 of the Income-tax Act, 1961, deals with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of default. Counsel submits that the principle of natural justice, which is embodied in sub-section (3) of section 142, is confined to a case when the assessee files a return and complies with the notices issued to him ; and it is denied by the statute to a defaulting assessee. It is also contended that there is no constitutional objection to such a provision. I decline to express any opinion on the latter submission. But, on a reading of section 144, it appears to me that the contention cannot be accepted. What that section requires the Income-tax Officer to do in the case of a defaulting assessee is to make an assessment of his total income to the best of judgment, after taking into account all relevant materials which the Income-tax Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gle judge of this court in Koyammankutty v. Fourth Addl. Income-tax Officer. Counsel for the petitioner in this case has also rightly sought support for his contention from section 69 of the Act. It reads : " Where in the financial year immediately preceding the assessment year the assessee has made investments which are not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of the investments or the explanation offered by him is not, in the opinion of the Income-tax Officer, satisfactory, the value of the investments may be deemed to be the income of the assessee of such financial year. " It is clear from the above provision that before ..... X X X X Extracts X X X X X X X X Extracts X X X X
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