TaxTMI 
TaxTMI 
2009 (10) TMI 230
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....e barred for the reason that the reassessments were not completed within four years from the end of the relevant assessment year in terms of the proviso to section 147 of the Act. We have heard senior standing counsel Sri P. K. R. Menon appearing for the appellants and Sri P. Balakrishnan appearing for the respondent. 2. The assesse is engaged in publication of newspapers, periodicals, etc. The assessee did not maintain any books of account and the returns for all the assessment years were filed without being accompanied by balance- sheet and statement of accounts. From the extracts pertaining to the income returned by the assessee it is seen that even advertisement receipts are returned by the assessee on estimation basis obviously show....
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....erefore, rejected the plea of limitation raised by the assessee. On the merits of the case, he noticed that the Assessing Officer had granted excess relief in the estimation of income and, therefore, after issuing notice to the assessee, he enhanced the income by some amounts. Then the assessee filed second appeals before the Tribunal. The Tribunal has accepted the assessee's appeals on the ground of limitation and set aside the order of the Commissioner of Income-tax (Appeals), against which these appeals are filed before us. 4. On going through the orders of the Tribunal, we find that going by their own reasoning, their finding that the assessee has disclosed fully and truly all material facts necessary for the completion of original a....
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....nt after seizure, we do not think this is a ground for the Tribunal to allow the assessee's appeals. Further, if books of account were retained by the Department, we see no reason why the assessee could not collect copies, prepare proper statement of accounts including profit and loss account and balance-sheet before the Department for the purpose of assessment. In any case the reopening is admittedly not based on any information collected by the Department from the seized records which were available at the time of assessment. On the other hand, the partners of the respondent-assessee submitted balance-sheets of the respondent-assessee before the bank which disclosed increase in current accounts and capital accounts of the partners which d....
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....f original assessments. As already pointed out by us, they do not have even accounts pertaining to advertisement receipts which is the major source of income of a publication company and the assessee had in fact chosen to return income from advertisement on estimation basis. We notice that the Tribunal has mixed up the limitation issue with the merits of assessment and without finding that the assessee has made full disclosure of materials for completion of assessments, the Tribunal declared the assessments as invalid which, in our view, is not sustainable. In fact, in order to challenge a reassessment on the ground of limitation, it is for the assessee to prove that they have furnished all material facts necessary for completion of the ori....