Law: Income Tax Act, 1922

Section: 23(2)

Law: Income Tax Act, 1922

Section: 23(2)

Income-tax Act, 1922 -- Section 23 -- Assessment -- Summary assessment -- Omnibus sort of printed assessment form -- Assessment made by filling in a few blanks in printed form -- Whether an order in the eye of law -- Held no -- Circular -- Central Board of Revenue Circular instructions in the matter of assessment -- Whether enforceable, if in contravention of the provisions of law -- Held no -- Assessment of individual -- Income-tax Officer disposing of case by filling in 3 blanks in a printed form without disclosing what sort of business or profession assessee followed nor disclosing source of his income -- Held: Method followed by I. T. O. was extraordinary, highly objectionable and illegal -- Order set aside and fresh assessment in accordance with law directed -- ORDER A.A. DARESHANI, Judicial Member---This is the case of an individual, who earned his income from a cement agency and also plied a truck for about 3 months in the period relevant to charge year 1973-74; thereafter, the truck was said to have been sold away. In the year under consideration, the appellant claimed to have earned commission at the rate of Rs. 1/50 per ton, on total sales of 3036 tons of cement; from the truck which was plied for a period of about 3 months, he had earned a profit of Rs. 1,500 only. After deducting his expenses, the appellant had disclosed an income of Rs. 1,350 which was, however, estimated at Rs. 11,600. It was this estimate of income, which the assessee has challenged in this appeal, as being capricious, arbitrary and without basis. The order of assessment which has been challenged in this appeal, is reproduced below:- "Return showing an income of Rs. 1,350 has been filed. In response to notice under Section 23(2), Mr. S.A. attended and produced books of accounts/denied maintenance of account. For similar reason as stated in earlier years/in absence of books of account, the income shown cannot be accepted. After discussion and in agreement with the assessee, net income is determined as under:- Net income is determined. ...... Rs. 11,600.00 Total income. ...... Rs. 11,600.00 This printed copy of an assessment order, in which the assessing officer has filled 3 or 4…

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