TMI Blog1994 (7) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment years 1978-79 and 1979-80, respectively. It is the contention of the petitioner that the aforesaid notices are on the face of them illegal, arbitrary and without authority of law. It is contended that for the assessment year 1978-79, assessment wag made by an order dated March 31, 1981 (annexure " A "), under section 143(3) read with section 144B of the Act. For the assessment year 1979-80, the assessment came to be made by the Inspecting Assistant Commissioner of Income-tax (Assessment) by an order dated March 30, 1982 (annexure " B "), under section 143(3) of the Act. It is the further contention of the petitioner that, when an order is passed under section 143(3) read with section 144B of the Act, it is required to be presumed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t information and material so as to have reasons to believe that income chargeable to tax has escaped assessment for the assessment years 1978-79 and 1979-80. In the affidavit-in-reply, the Inspecting Assistant Commissioner who had issued the notices has stated that for the assessment year 1979-80, as it was time-barring assessment, there was no further time to investigate the matter deeper. Hence, the statement of the assessee regarding the aforesaid discrepancies was believed and was relied upon and the time-barring assessment for the assessment year 1979-80 was completed, vide order dated March 30, 1982, under section 143(3) of the Act. In view of the aforesaid statement from the affidavit-in-reply, it is apparent that there was no s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eflected " as consumed " in the stock register was inflated by making arbitrary and bogus entries on two or three days of the accounting period and thereby the consumption of rock phosphate was inflated to reduce the taxable profits. As such, this finding given by the Assessing Officer for the assessment years 1980-81 to 1983-84 was not accepted by the appellate authority. The Commissioner of Income-tax (Appeals) had ordered deletion of the addition made by the Assessing Officer on account of shortage of rock phosphate treating the same as false inflation of manufacturing expenses. Against that order, the Department preferred the aforesaid appeals before the Tribunal. The Tribunal after considering all the facts arrived at the conclusion th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
