1984 (3) TMI 52

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....72, the ITO added this amount of Rs. 1,65,000 as well as a sum of Rs. 9,900 which accrued as interest on this sum to the income of the assessee. The impugned addition was challenged by the assessee before the AAC who passed the following order: " The income-tax records did not suggest if the Income-tax Officer made any enquiries from the alleged diaries. Records also do not show whether the appellant was confronted with any statement of Shri HarbansLal recorded by the Income-tax Officer or seized account books of Shri Harbans Lal before making the additions cited above. It, therefore, appears that the Income-tax Officer has not made proper enquiries nor given any opportunity to the assessee before making the assessment. In the circumstanc....

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....s from the end of the relevant assessment year. In this connection, the learned counsel has placed reliance upon a Privy Council decision reported as CIT v. Khemchand Ramdas [1938] 6 ITR 414. Therein, an assessment was made against the assessee-firm on an income of Rs. 1,25,000 at the maximum rate. Since it was a registered firm, no super-tax was levied. Subsequently, the Commissioner cancelled the order registering the assessee as a firm and directed the ITO to take necessary action. Pursuant to this direction, the ITO assessed the firm to super-tax. In these circumstances, it was held that the earlier assessment made by the ITO had become final and it was not open to him to reopen the assessment. Apparently, the Commissioner was not conce....