9911796707
TMI Blog1983 (6) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... ending with 1982-83. The ITO thereafter worked out the tax for each of the assessment years on the basis of the incomes so estimated. The incomes estimated and the additional tax determined as payable after giving credit for the tax already paid where assessments were completed, are as under : Asst. year Income determined Tax determined as Rs. payable Rs. 1976-77 27,471 6,914 1977-78 45,857 11,768 1978-79 59,995 20,717 1979-80 48,919 15,957 1980-81 1,85,701 1,11,530 1981-82 1,47,388 78,858 1982-83 1,71,319 90,191 In addition, in each of the assessment years, the ITO considered that penalty under section 271(1)(c) of the Act of an amount equal to the tax determined as payable would be payable. Apart from this, for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in accordance with the provisions of the Income-tax Act. It is nowhere stated in the Act that the order under section 132(5) should confine only to the seized asset. The Income-tax Officer may estimate the undisclosed income in a summary manner to the best of his judgment on the basis of any material that is available with him. The orders passed under section 132(5) do not require any rectification under section 154 as there are no mistakes apparent from records. " The assessee construed this as an order under section 154 and preferred an appeal to the Commissioner (Appeals). The Commissioner (Appeals) decided the matter by his order dated 29-9-1982. In deciding the appeal, he held as under : " It will be noticed that the order under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or and other order passed by him'. When an order is made under section 132(5), such an order clearly is an order passed by the ITO and, therefore, any mistake apparent from the record in such an order can be rectified and has to be rectified under section 154(1)(a). For example, the provisions of section 132(5) require an estimate to be made of the undisclosed income. This is to be made in a summary manner. Even though made in a summary manner, the ITO may make computation of income under different heads. A mistake in totalling may take place with the result that the income estimated is vitiated by a totalling mistake apparent from the records. Such a mistake would be rectifiable under the provisions of section 154. Then again, there may b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edy may be available to the assessee such as that under section 132(11) in the case of an order under section 132(5). The assessee in the present case preferred an application under section 154 and the ITO has negatived the request. Section 246(1)(f) of the Act provides expressly for appeal against an order under section 154 refusing to allow the claim made by the assessee. Therefore, the Commissioner (Appeals) is, when an appeal is preferred to him from an order under section 154, bound to entertain the appeal under section 246(1)(f) even if the application under section 154 was preferred in respect of an order passed by the ITO under section 132(5). We are unable to agree with the Commissioner (Appeals) that the assessee should have prefe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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