TMI Blog1988 (8) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... icer, A-Ward, Tinsukia, exercising power under section 247 of the Act informed the firm and its partners that "chargeable tax escaped assessment" for the year 1972-73, and, therefore, the impugned show cause notice was served on them, to reopen the order. The assessee protested on September 25, 1976, and later, on October 13, 1976, reiterated the protest. When a suitable reply was not received, they approached this court to quash the notice. The facts relevant to the notice fall in a very short compass. The closing stock as per the account books of the firm was shown at Rs. 7,08,081 whereas pledges account with the State Bank of India, Tinsukia, showed Rs. 15,26,810. The break up of pledges were lock and key account Rs. 7,71,610 and fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tated, was filed on behalf of the assessee. Whereas Santonu Kumar Ganguly, the Income-tax Officer at Tinsukia, in para 8 of his affidavit referred to letter dated November 28, 1978, as under : "That the statements made in paragraph 10 of the petition are not correct and are denied. It is not correct that any such letter dated November 28, 1972, was filed as alleged." N. G. Bhattacharjee, who is the A-Ward Income-tax Officer, Tinsukia, at the relevant time of the assessment order, in para 7 of his affidavit, asserted that no such letter, was filed and that the subject-matter at issue in this case was not investigated. "That the statements made in paragraph 10 of the petition are not correct and are denied. Therefore, nothing is on reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bank. 3. The fact of widely fantastic overvaluation of stock for purposes of the bank has already been proved by us with adequate evidence to your honour's entire satisfaction today morning when copies of the statements as filed by us with the bank were also produced before your honour. Thus, the position that the valuation of stock as shown by us in the bank statement is fantastically inflated and overstated stands fully substantiated. 4. Break-up figures of sales and purchases of S. S. Shafting and other goods have already been furnished by us. A list of our closing stock as on March 31, 1972, has also been furnished by us. Quantitative reconciliation in respect of S. S. Shafting has also been furnished by us. Consumption regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12, 1976, has been filed in which the following assertion is made : "That a copy of the letter dated November 28, 1972, written by my said client to the learned Income-tax Officer, 'A'-Ward, Tinsukia, in the course of hearing of its case for the assessment year 1972-73 regarding discrepancy in the figure of stock as pledged by it with the State Bank of India, Tinsukia, with the figure of closing stock as shown by it in its balancesheet has been filed with your honour at the time of my appearance before your honour on August 11, 1976. Your honour will please appreciate from the said letter that vis-a-vis of stock pledged with the bank in order to secure higher overdraft facilities is an accepted position." This letter is not disputed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
