9911796707
TMI Blog1977 (5) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... . yr. 1959-60 was filed declaring an income of Rs. 23,065 and the same was assessed accordingly. Likewise for the asst. yr. 1961-62 the return was filed declaring an income of Rs. 15,836. The ITO observed that in the asst. yrs. 1959-60 the assessee was granted import licence for Rs. 67,847 for importing card paper. According to him the assessee sold a portion of the same in that year and a portion in the asst. yr. 1961-62. He further observed that the assessee has not been able to prove the consumption of the imported card paper. Though the assessee produced manufacturing account, but, the ITO observed that there is no day to day qualitative and quantitative stock account. The assessee has not been able to prove that the cards manufactured ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase and that the GP rate of 30 per cent was a reasonable one. According to him, the position of books of accounts is the same as prevailed in the asst. yrs. 1967-68 to 1969-70 or the years with which the instant appeals are concerned. Hence he held that the proviso to s. 145 was attracted. He also observed that the ITO was justified in estimating the sales of the assessee in applying a GP rate 50 per cent. In this view he confirmed the addition made in the trading account for both the years under consideration. Hence, these appeals by the assessee are before us. 5. Heard both the learned counsel for the assessee Shri P.L. Kumar and the learned authorised representative of the Department Shri K.R. Manjani. In our view there is substance in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y action for the relevant years may have to be taken by reopening the assessments. Thus looking to the above contents of the letter we do not think that there could be a definite information for reopening the assessment under s. 147(a) with the ITO. Besides the above, we have seen that proceedings in both these cases are reported to have been initiated after lapse of 8 years which is the period prescribed for reopening the assessment under the law. For the asst. yr. 1959-60 the original assessment proceedings were completed on15th Jan., 1962and for the asst. yr. 1961-62 the original proceedings were completed on12th Nov., 1963. It was be seen that as per the provisions of s. 149 of the IT Act, 1961, no notice under s. 148 shall be issued: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee did not use the imported paper in the manufacture of playing cards, we have perused the detailes, given at page 6 of the paperbook which indicates the account of the paper consumed in each of the years and the balance lapsed. If that is so, we do not think there could be any scope for holding that the assessee concealed certain information from the ITO at the time or original assessment. In this view of the matter we do not think that the ITO was justified in initiating proceedings under s. 147(a) of the Act and thereby enhancing the income of the assessee. In the result we hold that the initiation of proceedings under s. 147 148 of the ITO was not justified as on the same set of facts two opinion could be formed and the AAC was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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