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TMI Blog2004 (7) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... Dated:- 16-7-2004 - Judge(s) : D. K. SETH., TAPAN KUMAR DUTT. JUDGMENT D.K. Seth J. - This appeal has been preferred on four grounds of which the fourth one is general and is implicit in ground No. 1. Before we take up ground No. 1, we propose to deal with grounds Nos. 2 and 3, viz.: "II. For that the Income-tax Appellate Tribunal erred in directing that figure of disclosed income of the block period should be taken as per section 158BB(1)(c) of the Income-tax Act, 1961, the same should be taken as nil. III. For that the Income-tax Appellate Tribunal is wrong in observing in para. 13 of the order that the figure of disclosed income for the purpose of undisclosed income under section 158BB should be taken as per books of the assessee when there is no legal requirement for the assessee to file his return of income which is in contravention of section 158BB(1)(c) of the Act." Grounds Nos. 2 and 3: In this case in the block assessment after search and seizure held in the previous year 1995-96 ten (10) earlier previous years from 1986-87 were included as law then prevailed. It was apparent from the books of account that the income for some of the previous years was belo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] 254 ITR 45 (Ker) and M.M. Thomas [2004] 265 ITR 327 (Ker), respectively, having regard to the amended provision incorporated in the section itself by the Finance Act, 2002, with retrospective effect from July 1,1995, these two questions are answered in favour of the assessee and against the Department. Ground No. 1: "For that the Income-tax Appellate Tribunal was wrong in deleting the entire addition made in the assessment in respect of income from 'pachai business'." So far as the first question is concerned, Mr. Agarwal had pointed out that the conclusion arrived at by the learned Tribunal is perverse and is based on no material and it had believed an explanation which is not at all a plausible explanation. According to him, initially, the explanation was that the assessee had trading business in rice and that explained the discrepancy in the purchase figure and consumption figure. This was the explanation given before the Assessing Officer. Whereas before the learned Tribunal the assessee had given a different explanation. There was no proof of trading and on materials, it was found by the Assessing Officer that the assessee was unable to establish that he was carrying o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng regard to its ordinary grammatical meaning. The word "assessment" has been defined to mean reassessment as well. Thus we do not get the meaning from the Act. Again we are to fall back on the ordinary grammatical meaning. In order to give the meaning of the word "computation", as intended by the Legislature, we may note the interconnection, interdependence and interlacing of these two expressions for the purpose of the Act in the context these were used. The Act requires an assessment of the income of the assessee. For the purpose of assessment the income is required to be computed. Upon such computation in the process of assessment the income chargeable to tax is determined and assessed to tax. The ordinary meaning of the word "assessment" is: "the action of assessing; the amount assessed; the determination of the amount of taxation; the scheme of charge or taxation; valuation of property or income for the purpose of taxation". In the context of the Act . . . "an assessment finding its origin in an activity of the Assessing Officer acting as such . . . The phrase describes the provenance of the assessment;. . . The use of the machinery provided by the Act..." Raleigh Investmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat an estimate is not an underestimate proper basis and justification has to be shown. Thus the state of estimation is fluid and not solid. Whereas computation is based on solid methodical process of calculation with some amount of approximate mathematical precision based on the datas and materials available. On the other hand, the word "appraisal" means: "the act of appraising; the setting of a price;" "appraise" means: "to fix a price for; especially, as an official valuer; to estimate the amount, or worth of;" whereas "appraisement" means: the action of "appraising"; "valuation by an official appraiser; estimated value; estimation of worth generally". Under the scheme of the Act, the Assessing Officer computes the income in the process of assessment in dealing with income from business; he does not estimate or appraise the income from the business. Therefore, we are supposed to keep the distinction in mind in such cases while approaching a finding of fact found by the learned Tribunal. Now, we may examine as to whether the finding of the learned Tribunal can be justified in the context of the meaning of "computation" as discussed above vis-à-vis the order passed by the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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