9911796707
TMI Blog1999 (11) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... after referred to as "the Tribunal"), on December 15, 1998, confirming the order passed by the Commissioner of Income-tax (Appeals) (hereinafter referred to as "the CIT (Appeals)"). It transpires from the record that on June 11, 1986, a survey operation was carried out by the Revenue under the provisions contained under section 133A of the Act at the business premises of the assessee and two diaries were seized wherein sales were recorded for a period of seven months. It is on the basis of these diaries the Revenue was of the view that the turnover was of Rs. 65,11,756. It transpired that profit at the rate of 14 per cent. was considered, and the assessee declared extra income of Rs. 22 lakhs in respect of endorsement mentioned in the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further contemplates that within 120 days of the seizure an order may be made by the Assessing Officer with the previous approval of the Deputy Commissioner, estimating the undisclosed income (including the income from the undisclosed property) in a summary manner to the best of his judgment on the basis of such materials as available with him, calculating the amount of tax on the income so estimated in accordance with the provisions of this Act. The section empowers him to retain in his custody such assets/or part thereof as are in his opinion sufficient to satisfy the aggregate of the amounts referred to in clauses (ii), (iia) and (iii) of section 132(5) of the Act and forthwith release the remaining portion, if any, of the assets to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f his judgment on the basis of material as available the undisclosed income is estimated, and, that the Assessing Officer on the basis of estimated income has calculated the amount of tax it does not mean that while making an order the Assessing Officer has to record the finding similar to that recorded under section 132(5) of the Act while making an order under section 143(3) of the Act. The Commissioner of Income-tax (Appeals) expressed the view that in the absence of any further material, a contrary view ought not to have been expressed by the Assessing Officer. Approval is granted on the basis of material and after application of mind. The Commissioner of Income-tax as well the Tribunal expressed the view that when no other material was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reed to the proposition that there was no promissory estoppel against the statute. The Tribunal arrived at a conclusion that as no other material was found at the time of assessment proceedings under section 143(3) of the Act it was not open to ignore the directions given under section 132(5) of the Act. We are required to state that section 132(5) of the Act does not contemplate any direction but contemplates previous approval of the Deputy Commissioner and that too before the assessment proceedings are concluded. The approval has nothing to do with the assessment as contemplated under section 143(3) of the Act. Therefore, we are of the view that though on material placed on record the Tribunal has committed no error in its ultimate conclu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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