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TMI Blog1979 (6) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... . 143 (3) (a). The order passed after non-observance of such mandatory provision is illegal and bad in law. Shri Thakore who attended on behalf of the assessee, submitted before us that the above ground was purely a legal one and did not require investigation into any fact. He urges before us that the said ground be admitted. Shri Thakore then relying upon the decision of J.K. High Court reported at 110 ITR 217 submitted that in the instant case the ITO having failed to indicate the tax payable by the assessee in the body of the assessment order, the said order must be held as illegal and void. Shri Thakore also drew our attention to the decision of the Tribunal. Delhi Bench in the ITA No. 4736/Del/75-76 decided on 2nd Dec., 77. The learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and imposing a liability upon the tax payer. In coming to this conclusion their Lordship referred to the decision of the Privy Council in case of Khemchand Ramdas (3), in which it was observed as follows. "In order to answer them, it is essential to bear in mind the method prescribed by the Act making an assessment to tax, using the word assessment in its comprehensive sense as including the whole procedure for imposing liability upon the tax payer. The method consists of the following steps. In the first place the taxable income of the tax payer has to be computed. In the next place the sum payable by him on the basis of such computation has been determined. Finally a notice of demand in the prescribed form specifying the sum so payable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he intentions of the legislature and by considering what was the substance of the matter, applied only to taxing provisions and has no application to all provisions in a taxing statute. It does not apply to a provision not creating a charge for the tax but laying down the machinery for its calculation or procedure for its collection. The provisions in a taxing statue dealing with machinery for assessment have to be construed by the ordinary rule of construction, that is to say, in accordance with the clear intention of the legislature, which is to make a charge levied effective. We may point out with utmost respect that the above decisions of the Supreme Court were not placed before their lordships of J K. High Court while disposing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be so considered as to fulfil the object of the legislature and should not be so construed as to make the assessment procedure infructuous and the assessment a nullity. No prejudice caused to the assessee in any manner whatsoever when the ITO did not send any copy of the computation-sheet along with the assessment order and demand notice. The assessee, if he so desired, could have easily applied for a copy thereof which, we are sure, the t. Would have given without any difficulty. In our view, therefore, on the facts s they obtain in the present case, we do not think that the assessment could be declared as a nullity for the failure on the part of the ITO in not sending the computation sheet which we repeat again is part and parcel of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling in commodities. The ass used to procure order for embroidery work and according to the specification and designs approved by the customers the embroidery work and according to the specifications and designs approved by the customers the embroidery work was carried out partly by hand work and partly by machine embroidery. The labour charges are debited against the charges received for the job work. Therefore, rejection of books results in the instants case was not justified. He pointed out that there was no scope of under-stating the sales because according to the practice followed by the ass as and when an order was booked a receipt was given to the customers setting out the embroidery work undertaken and the charges payable by the cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On perusal of material on records and the details which are filed by Shri Thakore, it is noticed that from the assessment order for 1970-71 the assessee under took the work of hand work embroidery. This has not only resulted in increase in the receipt but also increased in the hand work substantially in subsequent years which had resulted into higher receipts and higher payment for hand work embroidery. The effect of this is the fall in the rate of gross profit. Thus having regard to the aforesaid facts as also the fact that in subsequent years the margin of gross profit of 28.88 per cent had 19 per cent for the asst years. 1972-73 and 1973-74 respectively has been accepted by the AAC and his decision has not been challenged by the revenue, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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