9911796707
TMI Blog1974 (9) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner at No. 36, Kumarichetty Street, Kancheepuram, and seized out of a cash of Rs. 20,654, a sum of Rs. 15,000 and certain sale deeds and promissory notes. A notice under section 139(2) for the assessment year 1971-72 and also a notice under section 132(5) read with rule 112A were served on the petitioner on November 10, 1971, for the hearing of the case on November 30, 1971. At the request of the petitioner, the hearing was adjourned to December, 1971, and later to January 20, 1972. On that date, the petitioner was represented by a chartered accountant and he produced statements of accounts showing the investments made during the period from 1957-58 onwards up to 31st October, 1971. The petitioner also produced certain other records, na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,58,200 evidenced by the document did not relate to any particular year and it was spread over a number of years, and, therefore, the estimation of the entire income as if it was derived in the financial year relevant to the assessment year 1971-72 alone is illegal and unjustifiable. The learned counsel further submitted that he had produced enough materials, which would show the income derived in each year and the investments made. This evidence had not been adverted to by the Income-tax Officer in estimating that the entire income should be deemed to be chargeable in the assessment year 1971-72. The evidence produced by the petitioner before the Income-tax Officer consisted of: (1) a statement containing the particulars of the lands ow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at they related to advances made by him to some of his lessors and that the amounts were advanced only from his agricultural income. He explained about the sales tax assessments stating that though as a producer of the coconuts, he would not be a dealer in respect of the sale of coconuts produced in his garden, such objection had not been taken for one reason or the other. Mr. Venkatarama Iyer, the learned counsel for the petitioner, tried to correlate the investments with the income from those particular years and suggested that the Income-tax Officer has not made an honest attempt to find out whether those investments could not have been from the income of a particular year. The question for consideration before the Income-tax Officer w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the entire total income as that relatable to the assessment year 1971-72. Though technically the Income-tax Officer was right in making such an estimate invoking the first proviso to section 132(5), we expected the Income-tax Officer to deal with the facts in a more detailed manner, which, we think, might have enabled him to determine or ascertain the income from which each of such investments was made. As already stated, the petitioner has produced evidence showing the extent of the lands owned by him, the total number of coconut trees and probable yield from those trees. He had also produced the sales tax orders which showed that the profits from the taxable sales could not be as much as Rs. 1,58,200 during these years. Further, in esti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und due from the petitioner. In such regular assessment, it is open to the petitioner to rely on this evidence produced by him in support of his contention that the investments related to the proceeds of any particular year or that it did not relate to the assessment year 1971-72 or that it represented any income which has already suffered tax. We have also noted in our judgment in W.P. No. 1870 of 1973 (Gulab and Co. v. Superintendent of Central Excise (Preventive), Trichy) that if the order made under section 132(5) is set aside on any technical ground, it might or might not be possible for the Income-tax Officer to make a fresh order under section 132(5). Therefore, unless the order is found to be not honest or it is capricious and mala ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
