TMI Blog1929 (3) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... rection in arriving at a finding about the genuineness or otherwise of the account books produced by the petitioner in as much as the fact that the rokar bears the Income-tax Officer's signature dated 7-10-25 was completely ignored, and if so, Whether the finding itself is legal? The petitioner submits that these points arise under the following circum stances:- The petitioner has a money lending business at Baldarwa and a rice mill at Adapur in the district of Champaran. The present assessment is for the year 1927-28 which is based on the income of the previous year, the accounting year or the assessee ending in the month of Kartik of the Fasali year. In compliance with a notice under section 22(2) of the Act he submitted a retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uary, therefore, he made a note in the order-sheet to the effect that the account books produced were different form those signed by him at the time of the local enquiry as the sales did not agree and the assessee was asked under section 22(4) to produce the books which the Income-tax Officer had signed giving a warning to the assessee that otherwise he will make a heavy assessment and also a penal assessment. The 29th of January was fixed to produce these books. It appears that on the 29th of January a servant of the assessee, named Ibadat Mian, appeared, and it appears from the order-sheet that a petition was filed on that date for a month's time on the ground of illness of the proprietor. The order-sheet shows that the Income-tax Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r-sheet directing the representative of the assessee, namely, Ibadat Mian to show case on the date fixed, viz., the 31st of January why penalty under section 28 should not be imposed for deliberately showing a lesser amount as the income from sale of rice. On the 23rd of February, 1927 the assessee filed an application before the Income-tax Officer for cancellation of the assessment and for making a fresh assessment under the provisions of section 27 of the Act. The Income-tax Officer rejected this application by his order dated the 4th of June 1927 and on the same day he imposed a penalty of ₹ 679,-5-0 under section 28 of the Act. The assessee preferred an appeal before the Assistant Commissioner under section 30 of the Act; but t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 1928, imposed a penalty of ₹ 6,790. The present application is directed against these two orders dated the 22nd of July 1928 and the 6th November 1928, passed by the Commissioner. In dealing with the present application this Court is bound to accept the findings of fact arrived at by the Commissioner. It is not open to this Court to go into the facts of the case and to determine whether the Commissioner was right in his findings on the facts. The finding of facts of the Commissioner is that the Income-tax Officer did, as a matter of fact, go to the mill at Adapur on the 30th of July 1926, inspected certain books, made notes in the departmental note-book and in his diary, and signed the books which he had inspected. The Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notice is said not to comply with the provisions of section 22(4), and the mere fact of the denial of the existence of the account-books required to be produced does not absolve the assessee when it is found upon evidence that the books were really in existence, and the non-production thereof did amount to a failure to comply with the notice under section 22(4). As regards the order of the Commissioner imposing the penalty under section 28 of the Act, it is contended by Mr. Agarwala on behalf the Commissioner that this was an original order passed by the Commissioner and did not come within the provisions of sub-section 3 of section 66 of the Act which would empower this Court to call upon him to state a case. It is contended that it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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