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TMI Blog2007 (2) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... TC 1119/04 and TC 28/05 1984-85 TC 76 & 77/04 1985-86 TC 683/04 1986-87 TC 207 & 208/03 1987-88 TC 1141 & 1142 1988-89 ----------------------------------------- These appeals are at the instance of the assessee. The assessee is an advocate by profession. The original assessment was completed on March 20, 1986, under section 143(3). Based on the materials seized in the search conducted in the premises of the assessee on July 28, 1987, the assessments for the assessment years 1983-84 to 1986-87 were re-opened. The assessment for the assessment year 1987-88 was completed based on the orders for 1983-84 to 1986-87. The assessee resisted the reopening contending that when the assessing authority had all the materials on hand at the time of completion of the assessment, re-opening of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the cross-objection as regards the reopening of the assessment under section 147 of the Income-tax Act. He further agitated that the assessment for the years 1983-84 and 1984-85 was time barred. He also questioned the assumption of jurisdiction to reopen the assessment purely as a matter of change of opinion. He questioned the correctness of the order of the Tribunal confirming the order of assessment in fixing the professional income of the assessee. Equally, the appellant has a grievance as regards the addition made on the ground that there was an invisible expenditure when the assessment was made under section 132 of the Income-tax Act. He also questioned the assessment of the professional income on estimated basis when the returned income was accepted by the officer. As to the estimation on the agricultural income learned counsel submitted that the appellate authority arrived at the income based on evidence available on record. That apart, he questioned the correctness of the order in not giving credit to the returned income under professional and agricultural income and the correctness regarding the chit contribution made by the assessee for the assessment years 1986-87 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, thus, he made an addition at an average of 12.5 per cent. every year, to result in the estimation of income. The Commissioner (Appeals) took note of all the circumstances, particularly as regards the income from agriculture, which was supported by the village officer's certificate. Consequently, he held that the reduction of agricultural income is totally uncalled for. As regards the contribution to the chit through daughter, which was added as an income at the hands of the assessee, the Commissioner held that there are no materials to add it at the hands of the father. The appellate authority also noted that the chit proceeds were utilised at times for payment of loans and towards household expenses as well as chit contributions. He further pointed out that the estimation of expenses was excessive. Hence, taking note of the other sources of income and the number of cases handled in the sessions court, the Commissioner estimated the professional income at Rs. 60,000, but, at the same time, rejected the income returned by the assessee. The Commissioner of Income-tax, however, directed the acceptance of agricultural income, as returned. A perusal of the order of the Tribunal furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on as to the material that would afford them the basis to fix 10 per cent. or 15 per cent. It is an admitted fact that in respect of the estimation of professional income, there are absolutely no materials. Except as a mere guess work, we fail to see any substance in the approach of the authorities concerned. We would only add that it is totally unsafe to estimate the income of a professional purely on the number of cases handled in any particular period. Considering the reasonableness in the approach of the Commissioner of Income-tax (Appeals), and in the absence of any materials forthcoming from either the assessee or the Revenue, we restore the order of the Commissioner, both on account of the income from agriculture as well as on the income on the professional front. As regards the contribution to the chit and the expenditure on the domestic front, the assessee had explained that the chit proceeds were utilized towards chit contribution as well as for household expenses. The appellate authority had discussed about the explanation given and found that the estimate on household expenses at Rs. 72,000 was excessive. He also noted that the assessing authority had not given a set o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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