TMI Blog1992 (3) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... r, on the facts and in the circumstances of the case, the Tribunal should have directed the Income-tax Officer to redo the assessment ?" The facts leading to this reference are that the assessee is Messrs. Popular Electric Co. (P.) Ltd. and the assessment years involved are 1981-82 and 1982-83, for which the previous years ended on March 31, 1981, and March 31, 1982, respectively. The assessee-company is engaged in the business of electrical engineers and contractors. For the two assessment years under reference, returns have not been filed in response to notices under sections 139(2) and 142(1) of the Income-tax Act, 1961. The assessments were made on March 14, 1984, and February 16, 1985, under section 144, respectively. Considering the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the Income-tax Officer has not given any basis or data to determine the total income of the assessee at Rs. 50,000 for each of these two assessment years under consideration. It held that the Income-tax Officer was not justified in determining the total income of the assessee at Rs. 50,000 when the turnover was only Rs. 3,57,253 and Rs. 5,95,633 for the assessment years 1981-82 and 1982-83, respectively. Further, following the decision of the Supreme Court in the case of State of Kerala v. C. Velukutty [1966] 60 ITR 239, the Tribunal held that the best judgment assessments made by the Income-tax Officer did not conform to the requirements laid down by the Supreme Court in that case. In that view of the matter, the Tribunal quashed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake into account all the relevant materials in determining the quantum of income of the assessee but the Tribunal ought to have determined the quantum of the income or the loss as the case may be for the years under reference or directed the Income-tax Officer to make fresh assessments on the basis of the material available on record ; but the Tribunal, in this case, without adopting any of those two courses, simply annulled the assessments. On the facts and in the circumstances of this case, in our view, the Tribunal was not justified in annulling the assessments. The grievance of the assessee in this case was not that the provisions of section 144 were not attracted. The grievance was that, in making the assessment in terms of section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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