9911796707
TMI Blog1931 (7) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn of their total income for the previous year. In September the assessees put in a petition to the effect that the accounts from their mufassil branches had not as yet been received and were given time up till 20th October to submit their return, In October they filed another petition asking for further time on the ground that their accounts had not yet been adjusted by reason of some discrepancies in the trial balance of their branch accounts. This petition was on 25th October rejected so that thereafter the assessees were in default in respect of their return, They had however the right given to them by Section 22 (3), namely, that they could furnish their return at any time before the assessment was made and any return so made shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n asking for another month's time: to enable the petitioners to produce conclusive evidence of their previous year's income. 6. This petition contained statements to the affect that the branch accounts were lying at the branches and that the return had been submitted on obtaining instructions from branches and mufassil about the position of affairs. 7. It stated also that the Head Office accounts were at the petitioners' native place for settlement of certain disputed accounts. The Income Tax Officer refused to give any farther time saying that no time can be allowed after submission of return for which the party already got enough time. 8. He proceeded to make an assessment and assessed the assessees on the sum of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd branches were in Calcutta from October till December. This means that the assessees are shifty people, full of excuses and not minded to be either expeditious or straightforward. Even so however it is very necessary to see whether the Income Tax Officer had taken proper and reasonable steps to entitle him to make an assessment in default under Section 23 (4). The defaults relied upon by the Income Tax Officer in his order of 19th December was default under Sections 23 (2) and 22 (4). Whatever criticism may be passed upon the return filed on 16th December, it was a return; it was accepted as such; a notice under Section 23 (2) was issued upon it and the default relied upon by the Income Tax Officer was not default in submitting a return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a matter of law that he did not give to the assessees such reasonable opportunity as the Act requires to produce their evidence in support of their return. 13. It is said however that the Income Tax Officer was entitled to make an assessment in default by reason of the assessee's failure to comply with the requirement made under Section 22 (4) that they should produce their books. The principle upon which he acted was that no-time can be allowed after submission of return for which the party had already got enough time. The contention is that although the return filed on 16th of December must be deemed to have been made in due time under Section 22, nevertheless, as a notice had bean issued on 15th November calling for the books to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... do not think that they can be held liable to an assessment on the basis of default by reason merely of a finding that the books were in Calcutta. The assessees may perhaps deserve little sympathy, but an assessment in default is a very serious thing; and unless it is open to the Court to insist that notices under Sections 23 (2) and 22 (4) are given so as to afford reasonable opportunity to an assessee to comply with their requirements the honest and diligent tax-payer will have no security for fair treatment and no remedy in the absence of fair treatment. Assessees who are not diligent or straightforward may no doubt be treated very strictly, but in such cases it is a plain and unnecessary mistake to order them to comply with the statutory ..... X X X X Extracts X X X X X X X X Extracts X X X X
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