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TMI Blog1951 (6) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... at Falta was also being wound up, the staff was otherwise busy and had no time to spare for the preparation of the return. Thereafter a notice was served under Section 22(4) of the Act, calling for accounts but there appears to be no definite finding as to whether the accounts were actually produced or not. In any event there was something like a profit and loss account which the assessee prepared and submitted at the suggestion of the Income-tax Officer. Ultimately as there had been default in submitting the return the Income-tax Officer made a best judgment assessment under Section 23 (4) of the Act. So far as the making of a best judgment assessment is concerned on the income derived from the assessee's own business included in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to this Court reads thus:- Whether on the facts and in the circumstances of this case the sum of ₹ 7,629, the partnership income from Sir Govind Rice Mills in the name of the applicant's son, was rightly added to the income of the applicant as his own? The question looks like a question of fact and had there been a firm finding by the Tribunal as regards the material on which the sum of ₹ 7,629 had been added, we would have no difficulty in disposing of the question against the assessee at once. But it appears that the Tribunal upheld the addition only on the ground that the assessee had been asked to show cause why the income received by his son from the rice mill should not be treated as his own income an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form a suspicion that the son was in fact a benamidar for the father. So much about the initial stage. As regards the last stage at which the sum was actually added, again the order of the Income-tax Officer does not give any indication as to whether he had any material at all on which he could properly hold that the son was a mere name-lender. All that was before him appears to have been that Chittaranjan was the son of the assessee, that Chittaranjan an adult son was a partner in a rice mill and that--this I shall assume--some information had reached him that Chittaranjan was a benamidar. I am not prepared to hold that on this material alone particularly without confronting the assessee with any information which he might have had the In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l and the Tribunal has not found that he did. The definite material need not necessarily be in the form of legal evidence but there must be something which at the first stage should be brought to the notice of the assessee and if the Income-tax Officer in default of any response from the assessee adds something more the additional material also should appear in the order. I desire to add that if the question had been one of estimating the assessee's income from the admitted sources very different considerations would apply but this was a case where the Income-tax Officer was importing an item from a source outside the assessee's own business and attributing it to him without indicating where he found a link between that source and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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