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TMI Blog2022 (2) TMI 1240X X X X Extracts X X X X X X X X Extracts X X X X ..... egard to the method of accounting was quite apparent. The submission advanced on behalf of the assessee was therefore required to be dealt with on merits. However, neither the affidavit nor the note referred to by the Tribunal. The conclusions arrived at by the Tribunal were thus not consistent with the order of remand passed by this Court or with the direction issued by the Tribunal itself seeking certain information vide its order - The High Court also erred in affirming the view taken by the Tribunal. We therefore, set aside the orders passed by the Tribunal and the High Court and remit the matter back to the Tribunal to consider the matter afresh in the light of the order passed by this Court and in keeping with the direction issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants appeal), the Revenue shall ask for references against the order of rectification dated 13.12.1990 and the substantive order of the Tribunal dated 10.05.1991. If such applications are filed within sixty days from today, the Tribunal shall refer the questions arising therein for consideration of the High Court. The above course is adopted in the particular facts of this case and with a view to outcome the several technical objections put forward by both parties. We make it clear that we intend no reflection upon the merits of the case of either party. All the questions which arise from the orders of the Tribunal aforesaid shall be open in such references which may be heard together. The High Court may consider expeditious dispo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive order dated 10th May, 1991, would clearly show that in the garb of rectification/amendment, the Tribunal substituted a fresh order which, in our opinion, is in excess of its jurisdiction. Therefore, having regard to the nature of the issue that was before the Tribunal and in view of what has been stated above, we think it proper to set aside that order dated 10th May, 1991, and direct the Tribunal to consider the case on all the points arising out of the CIT s order dated 28th Nov., 1988. While considering the matter, the Tribunal will also keep in view of the provision of Section 11(4A) of the Act which came to be inserted by the Finance Act, 1983, w.e.f. 1st April, 1984. 6. Thereafter, the Tribunal by its order dated 17.06.2004, f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been discussed earlier, during the previous year assessee has resorted to deviation in following the method of accounting which was regularly followed earlier. Switchover to hybrid system of accounting was not bonafide as income cannot be deduced properly. Instead of computing income, the assessee has disclosed loss to the tune of Rs. 15,76,808/- by following a new system of accounting. Total income was then assessed at Rs.15,79,590/- and it was directed: Initiated penalty proceedings under Section 271 (1)(c). Assessed under Section 143(3)/254 of the Income Tax Act on a total income of Rs.15,79,590/-. Charge interest as per law. Issue D.N. and order to the assess. 8. The aforestated order passed by the Assessing Officer was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. The assessee trust along with its Accounts Officer and the counsel produced all relevant papers and registers before the Revenue authorities containing paper books, sundry debtors accounts and debtors ledger for verification of the same on different dates as per the order view of the Revenue Officer together with his Inspector i.e. Assistant Commissioner of Income Tax, Circle I, Cuttack covering almost on week time. 7. That, the revenue authorities checked the records for almost a week by following the random sampling method, but abruptly ended the operation on the plea that further verification by the Assessing Officer regarding the income received the income accrued would be voluminous. Verification of the same by the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Additional Solicitor General for the Revenue. 15. It is quite disturbing that despite specific directions made by this Court in its order dated 24.04.1996, the matter still lies undisposed on merits. 16. As the facts on record show, after the matter was remanded to the Tribunal, it called for information in terms of which direction, affidavit was filed on behalf of the assessee and a note was submitted on behalf of the Revenue. The affidavit made the position clear and in the entirety of the process including framing of second question, the challenge with regard to the method of accounting was quite apparent. The submission advanced on behalf of the assessee was therefore required to be dealt with on merits. However, neither the af ..... X X X X Extracts X X X X X X X X Extracts X X X X
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