TMI Blog1977 (10) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... while the heading of the notice showed that it was from the ITO, Special Circle-VII, Comp. Dist. IV, the notice was signed by the ITO, Special Circle, District IV, and, therefore, it was defective. Secondly, on the usual ground, i.e., there was no material to indicate the formation of the requisite belief for taking action under s. 147(a) of the Act. The learned trial judge overruled both the contentions of the appellant and held that the notice was valid. It appears that the learned judge in coming to his above decision relied on the recorded reasons set out in para. 13 of the affidavit of one Gurupada Dasgupta affirmed on the 22nd August, 1970, as also on a letter dated 15th February, 1969, which was before the ITO at the time of the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TO who made the original assessment. It was known to the assessing ITO as would appear from the assessment order that the difference in the jute purchase account was due to dhalta allowance of one seer for every 4 maunds purchased at Cossipur centre. Therefore, no new fact was disclosed to or discovered by the ITO for reopening the assessment. According to counsel, there was no omission or failure on the part of the assessee to disclose fully or truly its income. Counsel also submitted that there was no sanction by the Commissioner on the basis of the recorded reasons and the letter. Counsel has relied upon the unreported judgment dated June 16, 1972, in Matter No. 58 of 1970 (Bhawarlal Chandmull v. ITO) and also the unreported judgment dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , M/s. Mangilal Bhikamchand --assessment year 1952-53. In this case a search was made and a number of books of accounts and other documents have been seized. On scrutiny of some stock book and statement of stock relevant for the assessment year 1952-53, I find that the assessee did not disclose all his purchases. It appears from some statements of jute purchases and despatch account that the total receipts or purchases during the months of March, 1951, to December, 1951, comes to 29,689 mds., whereas in the final account submitted, the loose jute purchase has been shown as 28,026 mds. From a godown stock register it is seen that the total import or purchase comes to about 34,769 mds. whereas the total purchase of both loose jute and b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted. (G. P. Dasgupta) I.T.O., Spl. Cir. VII, Comp. Dt. IV, Cal. Enclo : Proposal u/s. 147. " The above letter was produced by the revenue at the time of the hearing from the relevant records of the case and inspection thereof was given to the appellant. The above letter should have been disclosed by the revenue in its affidavit filed in the court of first instance but in a writ application with a prayer for writ of certiorari when the entire records of the case are before the court it is open to it to examine such record for doing justice between the parties. As the said letter was not referred to in the court of the first instance, we also allowed the appellant to make its submission on the basis of that letter. The said letter d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sections 23 and 34 of the Income-tax Act, that the assessee is under a duty to disclose fully and truly material facts necessary for the assessment of the year, and that the duty is not discharged merely by the production of the books of account or other evidence. It is the duty of the assessee to bring to the notice of the Income-tax Officer particular items in the books of account or portions of documents which are relevant. Even if it be assumed that from the books produced, the Income-tax Officer, if he had been circumspect, could have found out the truth, the Income-tax Officer may not on that account be precluded from exercising the power to assess income which had escaped assessment. " Therefore, it appears that the assessee di ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
