9911796707
TMI Blog1991 (9) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... of accounting followed by the assessee, the Tribunal is right in law and fact in setting aside the assessment made under section 143(3) read with section 143(2)(a) on the basis of the original return filed?" We are concerned with the assessment year 1975-76, for which the accounting period ended on November 13, 1974. The respondents are the members of a Hindu undivided family. Shri Haridas Ramji, the respondent-assessee in one of the cases, is the " karta ". The other members of the Hindu undivided family are the wife and two sons. The family carried on the business of manufacture and sale of a soft drink by name " goldspot " under the name and style of " Calicut Bottling Co. " The business was leased out to a limited company by name " M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d returns voluntarily on " due basis ". For the assessment year in question, the assessees realised that they had not received any rental income and filed a revised nil return. The Tribunal found that the assessees had shown the method of accounting as " mercantile " and since the Revenue has accepted the nil returns filed by the assessees for the subsequent years 1976-77 and 1977-78 and did not bring to tax the rental income on " due basis " and since no rental income was received during the previous year relevant to the assessment year 1975-76, in the interest of justice, the revised returns filed by the assessees should be accepted. It was directed that the assessments made under section 143(3) read with section 143(2)(a) on the basis of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per the lease deed. They did so for the previous year 1974-75. That was proper. The Income-tax Officer was justified in effecting the assessments under section 143(3) read with section 143(2)(a) on the basis of the original returns. The subsequent returns filed on " receipt " basis has no basis or relevance. The Tribunal was in error in cancelling the assessments made under section 143(3) read with section 143(2)(a) of the Act on the basis of the original returns filed and in directing the Income-tax Officer to make fresh assessments on the basis of the revised returns filed by the assessee. We answer the question referred to this court in the negative, against the assessee and in favour of the Revenue. A copy of this judgment tinder the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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