Law: Income Tax Act, 1922

Section: 10

(a) Income-tax Act (XI of 1922)----S. 10--Assessment--Income-tax Officer finding that accounts of assessee suffered from a number of defects, obtained a written agreement, to figures adopted by him, from assessee and his legal adviser-- Assessee later on feeling aggrieved objecting to agreement and termed it as invalid and not binding on him and also objected to excessive estimate of turn over and rate of profit applied--Held agreement was binding on assessee who had consented to it and agreed to adoption of a particular quantum of income, sales and rate of profits-- Assessee could not be allowed to question same at a subsequent stage--Income-tax Officer in accordance with judicial pronouncements conducted himself in accordance with principles of justice, equity, good conscience and had not relied on any evidence of fact without first pointing out same to assessee--His course of action, therefore, could not be said to be tinged with any arbitrariness or illegality. A solemn agreement in the absence of any fraud or pressure is binding on the assessee as by this course of action he definitely bars any further thorough or detailed enquiry into the state of his accounts, avoids a chance of a higher assessment and the subsequent consequences of appeals, etc. attended thereto. The Assessing Officer at same time even at cost of some revenue, saves time and labour and has the consolation of causing no inconvenience to the assessee. As a matter of fact when an assessee agrees to this course of action, the assessing officer can very well require him to amend the return of income but as this would lengthen the cumbersome proceedings, both the parties without going into technical formalities, choose to take recourse to this convenient procedure. If, therefore, an assessee is allowed at a later stage i go back over such an agreement it would mean a breach of trust and shall bar the chances 'of any similar amicable settlements for other assessees as well. Moreover, an assessee who with full responsibility and full freedom of action adopts a course of action cannot be allowed to agitate a grievance against the course of action adopted by him of his own free will. It is true…

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