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TMI Blog1985 (12) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the amount refundable to the assessee at Rs. 11,514. The assessee filed an audited account in which two P L A/c appeared. One P L A/c was appearing for M/s. National Advertising Agency of which Shri Satya Prasad Sen was shown as proprietor. The P L A/c disclosed the net profit of Rs. 70,559.48. The second P L A/c was for M/s. National Advertising Agency and a net loss of Rs. 14,182.15 was shown in it. The profit as well as the net loss was carried to the capital account of Shri Sen where the net profit of Rs. 56,377.33 was added to the opening capital of Rs. 3,82,598.60. From the resultant balance of Rs. 4,38,975.93, the personal withdrawal of Rs. 70,685.29 was deducted. Thus, the credit balance in the their at Rs. 3,68,290.64. The CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roneous being prejudicial to the interests of revenue, for which the said assessment is hereby set aside with directions to the ITO to complete the assessment afresh as per the provisions of law, after giving opportunity of hearing to the assessee". Shri Banerjee, the counsel of the assessee, filed a paperbook containing 20 pages. The paper book included the order of the CIT under s. 263, letters issued by him for the hearing of the appeal, demand notice issued by the ITO dt. 30th Aug., 1982, the order of the Tribunal in the case of the assessee in ITA No. 1099 (Cal) 1984 for the asst. yr. 1979-80 the order of the Tribunal in ITA Nos. 315 (Cal)/1982 and ITA Nos. 3036, 3037 and 3038 (Cal) of 1973-74, the order of the CIT under s. 263 for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ightway at Rs. 50,65,137 and Rs. 9,01,048 apart from the administrative and office expenses, It shows that the ITO though completed the assessment under s. 143(1) but the ITO did not investigate into the facts where it was necessary for him to investigate. As the income was not correctly computed, the order passed by the ITO was incorrect, inadequate and incomplete in a material respect under cls. 1(a) and 1(b) of Explanation to s. 143 of the Act. He, therefore, urged that the order passed by the CIT should be maintained. 5. It has been indicated that assessee was carrying on business of Advertising Agency and the assessee filed his return on 31st Oct., 1980 showing the net income of Rs. 28,070 which included the interest income of Rs. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee filed the audited P L A/c and Balance Sheet. The record of the Revenue is available which was perused and he has filed the list of sundry debtors, creditors, loans and advances outstanding liabilities, bank account etc. but no trading account was drawn by the assessee for his business No. 1 and business No. 2. The business No. 1 is indicated in the P L A/c in which the receipt has been shown at Rs. 61,30,024.92 whereas the business No. 2 is mentioned in the P L A/c where the receipt has been shown at Rs. 11,01,883. The assessee had shown these receipts in the P L A/c and immediately there below, had deducted Rs. 50,65,137.63 and Rs. 9,01,048.94 with the caption "paid due". The assessee has not indicated the details or the nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into the nature of the bad debt. This show that the ITO did not investigate into the facts where he was required to investigate into the facts before computing the total income of the assessee. If the assessing Officer filed to investigate into the facts before making the assessment, the situation so arising on the figure of the ITO to investigate into the facts would lead to the conclusion that the order passed by him is erroneous and prejudicial to the interests of the Revenue. 6. Shri Banerjee in course of the argument indicate that the ITO can make the summary assessment if the total income disclosed by the assesses is below the limit prescribed by the CBDT. This fact is correct. But the Circular of the CBDT explaining the mode of c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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