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TMI Blog2014 (1) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer may have the discretion to reject accounts and arrive at the income on the basis of estimation - There cannot be any estimate for section 68, even if for the rest of the accounts, such an exercise is validly undertaken - This is for the simple reason that the expression ‘any sum’ refers to any specific amount and nothing more – Decided in favour of assessee. - ITA 27/2000 - - - Dated:- 13-8-2013 - S. Ravindra Bhat And Najmi Waziri,JJ. For the Appellant : Mr. P. N. Monga, Adv. For the Respondent : Mr. Amol Sinha, Senior Standing Counsel for Income Tax Department ORDER Though the appeal was admitted long ago in the year 2000, no question of law has been framed. Having considered the materials on reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee, this time upheld the reasoning by the A.O. but reduced the estimation from Rs.25 lakhs to Rs.17 lakhs. The assessee unsuccessfully appealed to the Tribunal; its decision has been questioned in the present appeal. It is contended by Mr. Monga, learned counsel for the appellant, that having regard to the express language of Section 68, the recourse to estimation by tax authorities was unwarranted. It was submitted that even if the reasoning of the lower authorities were to be affirmed with regard to the finalization of assessment vis-a-vis other heads of income, such course was not available to them in view of the clear phraseology adopted by Parliament in section 68 of the Income Tax Act, 1961. Mr. Sinha, learned counsel for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncerned previous year and which is unexplained. In this case that amount was Rs.15,17,060/-. The judgment of the Madras High Court is only an authority for the proposition that if the profits reported by the assessee are not accepted on the basis of the supporting accounts, the ITO can process such profits by estimation after rejecting the books. That was not a case where interpretation of Section 68 was called for. It is one thing to say that for separate heads of income such as profits, capital gains, etc., which would involve reporting of accounts maintained on an elaborate basis and also detailing expenditure etc., the Assessing Officer may have the discretion to reject accounts and arrive at the income on the basis of estimation. Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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