TaxTMI 
TaxTMI 
2004 (10) TMI 292
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....39;ble Supreme Court; (2) treating the copies of dropping the proceedings under section 148 served on the assessee on 8-3-2002 (incorrectly stated as 8-3-2000) are valid in law as against that he ought to have held and presumed that the said order was not passed and being barred by time limitation in the absence of service within the statutory period; (3) treating the order passed under section 148 dropping proceedings under section 147 is valid. And also erred in not considering that dropping of the proceedings of order sheet and writing drop the proceedings in DCR in item No. 64 is a valid order whereas the aforesaid action is not at all the order of reassessment and time limitation for communication of the order dropped is out of limitation and, therefore, the order passed under section 263 is totally erroneous in law; (4) holding that for action taken under section 263 is sufficient when any order is passed; (5) holding that the order passed under section 147 is without any proper enquiry and the learned Assessing Officer has not brought on record sufficient material to justify the proceedings is the face of glaring adverse facts which have b....
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....jection by the assessee against the issuance of notice under section 263. He refers pages 98 to 102 of the paper book i.e., the reply of the assessee to the notice issued under section 263 of the Act. The learned AR refers the judgment of the Hon'ble Supreme Court in the case of State of West Bengal v. M.R. Mondal AIR 2001 SC 3471 dated 3-9-2001, wherein the Hon'ble Court was pleased to hold that the order passed but not communicated has no valid existence in the eyes of law and further that an order passed but retained in the file without being communicated to the plaintiff can have no force of law authority and the same has no valid existence in the eyes of law or claimed to have come in operation in effect. He refers the judgment of the Hon'ble Supreme Court in the case of State of Andhra Pradesh v. M. Ramakishtaiah & Co. [1994] 93 STC 406 wherein it was held that in the absence of communication, the court shall presume that the order was not made on the date it purported to have been made and that it could have been made after the expiry of period of four years prescribed for passing such an order under revision. He also cites the following judgments:- 1. C....
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.... the assessment years on 7-2-2000 by order sheet entries under D&CR Nos. 64,65 and 66/162. The CIT was of the view that the order of the Assessing Officer dropping the proceedings was erroneous and prejudicial to the interests of the revenue and, accordingly, he invoked the provisions of section 263 of the Act and issued notices on 27-2-2002. The assessee objected the validity of the same on the basis of limitation. The CIT rejected contention of the assessee on the basis that the order for dropping of the proceedings under section 148 was communicated on 8-3-2000 (correct dated 8-3-2002) before passing of order under section 263. A question arises as to whether service of order dropping the reassessment proceedings upon the assessee was necessary and if so as lo whether it was served upon the assessee or not? Though the entry of the reassessment order in the D & CR is stated to have been shown on 7-2-2000 but there is nothing on record to suggest that order was communicated to the assessee nor is it the case of the revenue that order was sent through registered post to the assessee to presume deemed service thereof upon the assessee On similar issue the Ahmedabad Bench of the Trib....
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....ed by the Assessing Officer dropping the proceedings initiated under section 147/148 was an order erroneous insofar as it is prejudicial to the interests of revenue. He has, accordingly, set aside the order of dropping the proceedings for Assessment Years 1991-92, 1992-93 and 1993-94 with direction to the Assessing Officer to conduct proper enquiries and frame the proper assessment order on merit in accordance with law after giving opportunity to the assessee. The assessee has opposed the action of the learned CIT in the present appeals before us mainly on the basis that proper and sufficient enquiries were conducted by the Assessing Officer on earlier two occasions and invocation of the provisions of section 263 by the CIT is nothing but his own opinion on the matter. 8. In support of the grounds, the learned AR draws our attention to the contents of page 34 of the paper book i.e. notings made by the Assessing Officer at the bottom of the assessment order under section 143(3) of the Act for the Assessment Year 1991-92 and submits that the Assessing Officer had specifically pointed out that this assessment has been made under DCIT, Ujjain, monitoring and after getting his approv....
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....ee would be able lo succeed in its appeal before us. The basis for invocation of revisional provision by the learned CIT in his words is as 'perusal of the record indicates that without conducting proper enquiries, proceedings initiated under section 148 of the I.T. Act were dropped for all the Assessment Years on 7-2-2000 by order sheet entries under D&CR Nos. 64, 65 and 66/162. The learned CIT considered the dropping of the proceedings initiated under section 148 as erroneous in so far as prejudicial to the interest of revenue. The contention of the assessee is that on both the occasions i.e. at the stage of original as well as reassessment sufficient enquiry regarding the creditors were made During the assessment year 1991-92, the assessment under section 143(3) was made under DCIT, Ujjain, monitoring and after granting his approval cash credit confirmations were obtained and scrutinized on the lines indicated in the letter of DCIT. The facts are that in these cases a survey under section 133A of the Income-tax Act was conducted in September, 1996 i.e. after completion of original assessment. During the survey operation it was found that the assessee had obtained certain cas....
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....omputation of her total income for the assessment year 1995-96 were also furnished vide letter dated 20-12-1999 to the Assessing Officer. The contention of the assessee is that the assessee produced confirmations of the creditors who are assessees, payments were made through banking channels and none of the creditors has denied genuineness of loan. Its further contention is that queries raised during original assessment proceedings, before ADI and reassessment proceedings were replied by the assessee. The further contention is unless the deponent is cross-examined and the information is found incorrect on the file of Assessing Officer, the adverse view cannot be taken mechancially. In support, following judgments were relied upon by the learned A.R.:- (i) Kalra Glue Factory v. Sales Tax Tribunal [1987] 167 ITR 498 (SC) (ii) CIT v. U.M. Shah Proprietor Shrenik Trading Co. [1973] 90 ITR 396 (Bom.) (iii) Prakashchand Nahta v. Union of India [1987] 163 ITR 310 (SC) (sic) (iv) Kishinchand Chellaram v. CIT [1980] 125 ITR 713 (SC) (v) Mehta Parikh & Co. v. CIT [1956] 30 ITR 181 (SC) (vi) Malwa Knitting Works v. CIT [1977] 107 ITR 379 (....
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....urnished to the Assessing Officer. Thus, these were sufficient materials on the record of the Assessing Officer to take a decision as to whether the creditors in question were genuine or not. In case of his dissatisfaction, he was at liberty to ask the assessee to produce the creditors or issue summons to them to verify their confirmations about the credits to the assessee. The Assessing Officer was, however, satisfied with the genuineness of the creditors, hence he opted to drop the reassessment proceedings vide order dated 7-2-2000. We thus answer the issue in affirmative that claim of the assessee related to the creditors was properly examined by the Assessing Officer during the reassessment proceedings. The view taken by the learned CIT in the revisional order that explanation furnished by the assessee was not sufficient to drop the reassessment proceedings is thus nothing but a change of opinion, which is not allowed to be made a basis for invocation of revisional provision under section 263 of the Act. The dropping of the reassessment proceedings, therefore, cannot be termed as erroneous and prejudicial to the interest of revenue. 11. In the result, appeals are partly allo....
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....nto this aspect and has ignored the fact that retraction of surrender of Rs. 40,000 was not in order. The CIT observed further that the Assessing Officer should have conducted proper enquiries to look into the genuineness of cash credits with reference to creditworthiness, identity of the creditor and genuineness of the transactions taken in the Assessment Years 1991-92 and 1992-93 on which interest has been claimed to have been paid during the year relevant for the assessment year, under consideration. Against this revisional order, the assessee is in appeal before us on the aforesaid grounds. 14. We have heard and considered the arguments of parties. 15. So far as the matter relating to payment of interest to creditors on the credits taken in the Assessment Years 1991-92 and 1992-93 is concerned, we have already decided the genuineness of the credits in these assessment years in favour of the assessee in the above appeals and thus interest claimed to have been paid to these creditors during the year relevant for the assessment year in question is held genuine and thus mere was no occasion before the CIT to invoke provisions of section 263 of the Act. Ground No. 3 is thus al....
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....he order regarding dropping of proceedings on 8-3-2002, therefore, same was time-barred and not available for revision. It was also submitted that Assessing Officer had conducted sufficient enquiries before dropping the proceedings and, therefore, such dropping could not be called erroneous and prejudicial to the interests to revenue. Both these contentions were not accepted by learned CIT and the order was held to be erroneous in so far as prejudicial to the interests of revenue and same was set aside with a direction to conduct proper enquiries and frame proper assessment order in accordance with the law. In respect of ground Nos. 1 to 4 Learned AR submitted that reassessment proceedings initiated under section 148 were dropped without communicating same to the assessee before the period allowed to pass reassessment order under section 143(3) was supplied to the assessee only on 8-3-2002 after assessee took objection before CIT regarding the service. Since dropping order was served on 8-3-2002, it indicated that same was not passed earlier and was thus time barred. He then referred to pages 98 to 102 which is copy of the reply given in response to notice under section 26....
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....nclined to agree with learned DR. The issue before us is not validity of the order passed for dropping of proceedings under section 147. The issue before us is whether CIT had powers to revise order dropping such proceedings. Section 263(1) reads as under: "The Commissioner may call for and examine the record of any proceeding under this Act, and if he consideres that any order passed therein by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment." From the plain reading of the section, it becomes very clear and Commissioner has powers to make revision against any order passed in any proceedings which are found to be erroneous in so far as they are prejudicial to the interests of the revenue. Such power arises on passing of an order in any proceedings and not after order has been served. Le....
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....ROPOS GROUND NOS. 5 & 6 - The brief facts of the case are that unsecured loans from 5 parties namely, (1) Sejal Enterprises, (2) Sanjay Agrawal, (3) Tarachand Agrawal, (4) Anju Parasramka, and (5) Kamal Kumar Agarwal, were accepted by the revenue authorities in original assessment proceedings. Later on during the survey proceedings and enquiries through Investigation Directorate, Ahmedabad, it was revealed that such creditors are not genuine. In the meantime, interest on some creditors was not allowed to the assessee being interest on bogus creditors and assessee came in second appeal before the Tribunal, where it was observed that Assessing Officer should first reopen the assessment and examine the genuineness of such credits in earlier years and only then question of disallowance of interest should be decided. In view of these observations assessments of the assessee were reopened under section 147 for Assessment Years 1991-92, 1992-93 and 1993-94. This reopening was dropped later on. The Commissioner has invoked the provisions of section 263 in respect of these dropping of proceedings initiated under section 147/148 holding that such dropping order was erroneous in so far as it ....
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....her hand, Learned DR contended that no proper enquiries were made by the Assessing Officer during 147 proceedings. Same were dropped without sufficient enquiry. He submitted that report of Investigating authorities were before him, still he did not bother to raise appropriate questions. He submitted that failure to conduct proper enquiries would render an order passed as erroneous. In this regard, he relied on Smt. Tara Devi Aggrawal v. CIT [1973] 88 ITR 323 (SC). He also relied on Swarup Vegetable Industries Ltd. No.1 v. CIT [1991] 187 ITR 412 (All.). He also contended that dropping order was passed without application of mind and thus same should be held to be erroneous and in this regard he relied on Malabar Industrial Co. Ltd. v. CIT [2000] 243 ITR 83 (SC). He also contended that revisionary powers of Commissioner are of wide amplitude and even material which has been on record after assessment can also be taken into consideration for exercising such powers. In this regard, he relied on CIT v. Shree Manjunathesware Packing Products & Camphor Works [1998] 231 ITR 53 (SC). 24. I have considered the rival submissions carefully and have gone through the relevant material on reco....
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....ve been submitted and their confirmations have been filed. After this, Assessing Officer did not bother to raise any more questions. When the report of investigating authorities was before him that these people have indulged in only entry transactions or Hawala transactions, which means cheques were obtained from these parties and cash was simultaneously returned to them. We also find that copies of replies placed at page 65 to 71 are dated 21-12-98 i.e. before the enquiry was started by the Assessing Officer on 17-11-99 (see page 52 letter of Assessing Officer written to the assessee) which very clearly mean that these documents were not filed before the Assessing Officer. Reassessment proceedings were dropped merely on the basis of simple reply which clearly shows that there was no proper application of mind. It is well settled position that failure to make proper enquiries will also render an order to be erroneous and in the case before us where assessments were reopened in the light of material obtained by the Deptt. that certain loans were not genuine, still Assessing Officer simply accepted the same on the basis of letter without raising further enquiries or obtaining relevan....
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....spect of ground Nos. 1 & 2. As far as ground No. 3 is concerned, as I have held in above noted paras that Assessing Officer had not conducted proper enquiries and proceedings under section 147 were dropped without application of mind, the said loans cannot be held to be genuine and the fate of allowance of interest on the same would depend after the loans are established to be genuine or bogus. Therefore, I uphold the order of learned CIT partly and same is allowed in respect of ground No. 3 and quashes in respect of ground Nos. 1 & 2. In the result, ITA No. 269/IND/2002 is partly allowed. ORDER UNDER SECTION 255(4) OF THE INCOME-TAX ACT, 1961 Per Shri I.C. Sudhir, JM 29. Since there is a difference of opinion between the Judicial Member and Accountant Member, the matter is being referred to the Hon'ble President of the Income Tax Appellate Tribunal with a request that the following questions may be referred to a Third Member or lo pass such order as the Hon'ble President may desire: ITA Nos. 266 to 268/IND/2002 1. As to whether the dropping of the proceedings under section 148 served on the assessee on 8-3-2002 is invalid and barred by time li....
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....the lines indicated in the DCIT's letter noted above. 4. Thereafter, notices were issued under section 148 for first two years on 3-6-1997 and for the third year on 12-5-1997. The reasons recorded for issue of notices under section 148 for these years are as under: (i) For the assessment year 1991-92 During the course of assessment proceedings for assessment year 1994-95, while verifying the genuineness of credits introduced in various names, enquiries were conducted through ADI, Ahmedabad and AD, Indore and as per their report the following unsecured loans were bogus: S. No. Particulars Amount Date (1) M/s. Sejal Enterprises, Ahmedabad 60,000 18-3-1991 40,000 23-3-1991 (2) Tarachand Agrawal, Ahmedabad 50,000 18-3-1991 (3) Anju Parasramka, Ahmedabad 60,000 23-3-1991 60,000 -do- (4) Sanjay Agrawal, Ahmedabad 50,000 18-3-1991 (5) Swaroop Chand Jain, Indore 50,000 14-3-2001 (6) Arun Sangar, Indore 25,000 15-3-1991 (7) Ashok Jain, Indore 50,000 14-3-1991 (ii) For the assessment year 1992-93 - During the cou....
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....y Agrawal Rs. 50,000 - 3. Tarachand Agrawal Rs. 50,000 - 4. Anju Parasramka Rs. 1,20,000 - For the assessment year 1992-93 Sr. No. Parties Amount Intt. 1. Anju Parasramka - Rs. 18,000 2. Sejal Enterprises Rs. 80,000 Rs. 5,803 3. Sanjay Agrawal Rs. 60,000 Rs. 16,401 4. Tarachand Agrawal Rs. 1,00,000 Rs. 22,336 5. Kamal Kumar Agrawal Rs. 20,000 Rs. - For the assessment year 1993-94 Sr. No. Parties Amount Intt. 1. Anju Parasramka -- Rs. 18,000 2. Sejal Enterprises -- Rs. 27,000 3. Tarachand Agrawal -- Rs. 22,500 4. Sanjay Agrawal -- Rs. 1,65,000 5. Kamal Kumar Agrawal -- Rs. 3,000 8. In the forth year viz. assessment year 1997-98, the dispute is only with regard to disallowance of interest pertaining to the aforesaid cash credit. 9. The assessee raised objection before the CIT that the impugned order dated 7-2-2000 dropping proceedings under section 148 which are sought to be revised, has been communicated to the assessee on 8-3-2002, which was....
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....ogus creditors were introduced in the books of account which necessitated reopening of assessment and on examination again through Investigation Directorate at Ahmedabad and the Assessing Officer in which it transpired that the form of cash creditors. Similarly for interest also, only accommodation entries were taken and in some assessment years, when interest disallowance relating to bogus cash credits were disallowed in the course of assessment proceeding, the Tribunal held that the Assessing Officer should first reopen the assessment, examine and genuineness of cash credits and thereafter proceed to disallow interest. According to CIT, the Assessing Officer did not carry out proper investigation and enquiries to look into the genuineness of the cash credits, the genuineness of transactions, creditworthiness of the lender and identify of the persons. He therefore, set aside the order of the Assessing Officer dropping the proceedings under section 147 with a direction to the Assessing Officer to frame proper assessment after considering the submissions of the assessee. 12. In the appeal filed before the Tribunal the assessee submitted that there was no valid and effective order....
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....were dropped merely on the basis of simple reply which clearly shows that there was no proper application of mind, and therefore, CIT was justified in setting aside the assessment wit h a direction to re-make the same after proper inquiries. 14. The rival contentions of the parties are considered. In so far as the question of validity of order dropping re-assessment proceedings is concerned, in my opinion, the same cannot be said to be invalid merely because it was communicated late. What the provisions governing time limit under section 153 say is that it prohibits passing of an order after a stipulated period. In case of an order under section 147 the time limit is prescribed under section 153(2) as under: "153(2). No order of assessment, reassessment or re-computation shall be made under section 147 after the expiry of one year from the end of the financial year in which the notice under section 148 was served: Provided that where the notice under section 148 was served on or after the 1st day of April, 1999 but before the 1st day of April, 2000, such assessment, reassessment or re-computation may be made at any time up to the 31st day of March, 2002." 15....
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....f section 246(1) read with clause (b) of section 246(1A) and time limit to file an appeal there against is prescribed under section 249(2) as 30 days from the date of receipt of order or the date on which intimation of the order sought to be appealed is served. Here the service is made the starting point for limitation and not the date of order. A petition for rectification of an order by virtue of section 154(7) is to be made within four years from the date of the order passed. Here the Courts have invariably taken the date of passing the order as date of service and the logic is that unless it is served he cannot anticipate of filing an application for rectification. Again section 263 dealing with revision prescribes time limit of two years from the end of financial year in which the order was sought to be revised was passed but under section 264 dealing with revision of assessee's application prescribes a time limit of one year from the date on which the order in question was communicated to him or the date on which he otherwise came to know about it, whichever is earlier. Provision of limitation for taking an action within a specified time also provides for exclusion of the....
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....uently the order under section 263 would be a valid order. 20. As regards the third question of difference on merits, I find the following appear from the record in connection with the cash credits: (i) ITO's letter dated 6-12-1991 to M/s. Dewas Silk Mills, whereby the Assessing Officer required the assessee to furnish certain information, the relevant item i.e., Querry No. 25 is reproduced below with reply: "25. Please give the list of creditors of above Rs. 10,000. The mode of receipt and mode of payment of the amount i.e., in cash, cross/bearer cheques/Demand Draft etc." (ii) Reply of the assessee vide a letter on the issue reads as under: "The list of creditors is already attached with the audited accounts. Confirmation of new loan creditors giving their complete address, GIR No./PA No. are enclosed." (iii) Vide assessee's letter dated 4-8-1992 addressed to the Assessing Officer, Dewas, the assessee has stated in para-6 as under: "6. List of new cash credits giving the GIR No. Wards etc. of the remaining creditors is enclosed along with their confirmations." (iv) The Assessing Officer vide letter dated 5-....
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....Assessing Officer, Indore and as per their report the following unsecured loans were bogus: 1. M/s. Sejal Enterprises, Ahmedabad 60,000 18-3-1991 40,000 23-3-1991 2. Tarachand Agrawal, Ahmedabad 50,000 15-3-1991 3. Anju Parasramka, Ahmedabad 60,000 23-3-1991 60,000 -do- 4. Sanjay Agrawal, Ahmedabad 50,000 18-3-1991 5. Swaroop Agrawal Ahmedabad 50,000 14-3-1991 6. Arun Sangar, Indore 25,000 15-3-1991 7. Ashok Jain, Indore 50,000 14-3-1991 You are directed to submit your return in response to the said notice". (ix) Similarly for assessment year 1992-93, the ACIT, Circle-I, Ujjain vide his letter dated 20-6-1997 addressed to the assessee had stated the reasons as under: "During the course of assessment proceedings for assessment year 1994-95 while verifying the genuineness of credits introduced in various names, enquiries were conducted through ADI, Ahmedabad and Assessing Officer, Indore and as per their report the following unsecured loans were bogus: Amount Date (Rs.)....
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.... our letters dated 24-3-1993/15-5-1993 which are already on record. (1) With reference to your letter dated 20-6-1997 stating that the loans of the following persons are bogus as per the report of ADI, Ahmedabad due to the statement of Shri Sunil Agrawal given to him. (1) Tarachand Agrawal (2) Sejal Enterprises (3) Anju Parasramka (4) Sanjay Agrawal In this connection, please find herewith the copy of affidavit of Shri Sunil Agrawal dtd. 4-11-1997 (i.e., after his statement before ADI, Ahmedabad) duly notarized on stamp paper. In this affidavit he has clearly mentioned that the loans given by him and his family members are genuine and the statement given by him was under pressure and duress. We are also enclosing herewith the confirmation, GIR number and copy of return submitted to department in support of genuineness of loans introduced. Hence, the above cash credits should not be added to our income under section 68 of the Income-tax Act. (2) This is brought to your notice that again considering the considered issue amounts to change of opinion which is not permissible in law and is merely to harass the assessee which....
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.... addresses (available with the assessee on the date). All these persons, from whom new loans were introduced, during the year under review. The letter reads as under: "We are enclosing herewith the present address (available with us as on the date) of the persons, from whom new loans were introduced during the year under review. The information given by this letter is as under: Sr. No. Name & Address Loan Recd. No. F. Y. 1990- 91 DD N6/Ch. No. dt. Bank GIR/Ward 1. Sejal Enterprises 60,000 4009401 16-3- 1991 SBI 31 110 PT 3679 ABD Ward 5(6) -- 40,000 401278 22-3- 1991 -- -- 2. Anju M. Parasramka 60,000 401277 22-8- 1991 SBI, Indore A 1120 60,000 401279 22-8- 1991 -- -- 3. Shri Sanjay Kumar Agrawal 50,000 400492 16-8- 1991 SBI, Indore 31 110 PN 4212 Ward 5(2) 4. Smt. Premlata Agrawal W/o Tarachand 50,000 400941 16-8- 1991 SBI, Indore 31 110 PO 4281Ward 6(4) (xv) ACIT, Ujjain vide his letter dated 17-11-1999 required the assessee with regard Ahmedabad loans, in paragraph-4, (a) Smt. Anju M. Parasramka, it is found....
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.... Branch, Lal Darwaja. The copies of bank statement is attached herewith. (II) Sejal Enterprises M/s. Dewas Silk Mills & Nutan Synthetics Asst yr. Int Rs. Int. Rs. 1990-91 518 Nil 1991-92 25,803 12,398 1992-93 27,000 16,500 1993-94 27,000 16,500 1994-95 27,000 16,500 1995-96 27,000 16,500 1996-97 27,000 16,500 1997-98 27,000 16,500 The above mentioned interest received were deposited in the General Co-op. Bank Ltd. Branch, Lal Darwaja and Madhupura Mer. Bank Ltd. Br. Shahibaug. The copies of bank statement is attached herewith. (III) Shri Sanjay Agarwal M/s. Dewas Silk Mills & Nutan Synthetics Asst. yr. Int. Rs. Int. Rs. 1990-91 308 Nil 1991-92 16.402 5,635 1992-93 16,500 7,500 1993-94 16,500 7,500 1994-95 16,500 7,500 1995-96 16,500 7,500 1996-97 16,500 7,500 1997-98 16,500 7,500 The above mentioned interest received were deposited in the General Co-op. Bank Ltd. Branch, Lal Darwaja. The copies of bank statement is attached herewith. (IV) Anju M. Parasramka M/s....
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....s commission and interest income. Late Shri Tarachand Agrawal deposited Rs. 50,000 on dated 18-3-1991 and Rs. 1,00,000 on dated 5-4-1991 to Dewas Silk Mills. He also deposited Rs. 50,000 on dated 3-7-1991 to Nutan Synthetics. Shri Tarachand was assessed to Income Tax since 1988-89. His source of Income was salary income and interest. Further Shri Tarachand Agarwal had taken loan from S.B. Kadia, B.D. Kadia, Narayan S. Mali and Vimladevi. Out of all these loans and accumulated funds from above referred income he had deposited the said sums to Dewas Silk Mills and Nutan Synthetics. The confirmation of all loans submitted earlier. Shri P.N. Doshi has deposited Rs. 50,000 to Sanjay T. Agrawal, Shri P.N. Doshi assessed to Income-tax since long. His source of income was commission and interest. Now-a-days he resides in Surat. Details of interest in respect of Shri Tarachand Agrawal and Anju M. Parasramka are as under. I hereby produce the cash book and ledger from 1990-91 to 1996-97 in case of M/s. Sejal Enterprise and Sanjay Agrawal for your honours verification. (xix) An affidavit of Shri Sunil T. Agrawal sworn on 4-11-1996 was also filed, w....
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.... and in case I do not admit then extreme actions under Income-tax Act and I.P.C. Act will be taken against me. (7) That I was under heavy pressure, mental tension and frightened of imprisonment and fine and in such a panic and duress condition, I was asked to reply to one of the questions by admitting to the effect that I have not given deposits to M/s. Nutan Synthetics, Dewas Rs. 3,00,000 M/s. Dewas Silk Mills Rs. 5,60,000 and J.M. Granites Exports Rs. 50,000 and further compelled me to state that these are only Hawala Entries and all these entries are bogus entries and accordingly I replied in the same way which is far from truth. I was also compelled to say that interest on deposits was retuned to Ashok Khandelia in cash but this is also not correct and for from truth. (8) That I say on oath that in fact it is true that I have given deposit to (1) M/s. Nutan Synthetics, Dewas Rs. 3,00,000 (ii) M/s. Dewas Silk Mills Rs. 5,60,000 and (iii) J.M.T. Granite Exports Rs. 50,000 and I further affirm that these are neither Hawala Entries nor Bogus Entries. (9) That I have purchased immovable property viz. House in Kuber Nagar in 1993 from M/s. Sugam Builders, M....
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....original assessment and in the reassessment proceeding both by the Assessing Officer, ACITR and DCIT, who were monitoring the assessment and after proper discussion, the proceedings for reopening were dropped. As observed by the Bombay High Court in the case of CIT v. Gabrial India Ltd. [1993] 203 ITR 108, the order cannot be termed as erroneous unless it is not in accordance with law. If the ITO acting in accordance with the law makes certain assessment, the same cannot be branded as erroneous by the Commissioner simply because, according to him, the order should have been written more elaborately. This section does not visualize a case of substitution of the judgment of the Commissioner for that of the Income-tax Officer, who passed the order, unless the decision is held to be erroneous. Bombay High Court visualized where the Income Tax Officer while making an assessment examines the accounts, makes enquiries, applies his mind to the facts and circumstances of the case and determines the income either by accepting the accounts or by making some estimates himself. The Commissioner, on perusal of the records, may be of the opinion that the estimate made by the officer concerned was....