9911796707
TMI Blog1982 (10) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... premises of the assessee by the Income-tax Dept. on 27th August, 1971. Some of the books of account were also seized by the Dept. The ITO while making the above assessments went into those books of account in great detail. He was of the opinion that the various concerns in the name of M/s Mannoolal Kedarnath Sons, M/s Kumar Co., M/s Sanjay Engg. Corporation, M/s Banaspati Agents and M/s Mannoolal Kedarnath Co. were mere benami concerns of M/s Mannoolal Kedarnath (Firm). He therefore, included the income of these concerns in the assessments of the firm for the asst. yrs. 1971-72 and 1973-74. Simultaneously he also made assessments as a protective measure on M/s Mannoolal Kedarnath Co. for the asst. yr. 1971-72 and 1973-74 on income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were passed by him in the cases of M/s. Mannoolal Kedarnath Co. and M/s Mannoolal Kedarnath Sons. He passed a separate order elating to refusal of registration by the ITO in the case of M/s Mannoolal Kedarnath (Firm) for the asst. yr. 1973-74. Since the AAC had set aside the assessment for the above assessment year, he cancelled the order of the ITO passed u/s 186(2) of the Act and also directed to dispose of the assessee's application for continuation of registration afresh. 4. The ITO appealed to the Tribunal against the above orders of the AAC. The ld. A.M. found that on some issues, the assessee had been apprised of the material collected by the ITO. With regard to others, he was of the view that the assessee was not entitled to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. On the facts and circumstances stated above, the following questions incorporating the difference of opinion between the ld. Members, have been referred to me by the President: "(1) Whether on the facts and in the circumstances of the case, the AAC was justified in setting aside the order u/s 144 on the ground that the ITO had not issued notice u/s 143(3) to the assessee, and in directing that the assessments u/s 144 should be completed "after providing full opportunity of hearing to the appellant and issuing notice u/s 143 (3)." (ii) Whether on the facts and in the circumstances of the case, the AAC was justified in upholding the action u/s 144 of the IT Act, 1961 and yet reversing the order u/s 186(2) passed by the ITO, on the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctive or capricious. If the estimate by the assessing authority is a bona fide estimate and is based on a rational basis, the facts that there is no good proof in support of that estimate is immaterial. Prima facie the assessing authority is the best judge of the situation. It is his best judgement and not anyone else's. 8. Even otherwise, the AAC could not say with reference to which particular material, the assessee was entitled to an opportunity to show cause unless he himself had gone through that material and given his decision on its admissibility or otherwise. Unfortunately that exercise has not been done by the AAC. as rightly pointed out by the ld. A.M. I also do not agree with the observation of the ld. J.M. that no prejudice c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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