TaxTMI 
TaxTMI 
2015 (9) TMI 388
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....fficer for the assessment year 2005-06 held as follows : "Under the stated circumstances, considering the chronology of facts it can easily be concluded that the final account submitted by the assessee has no basis. As such the statement of account filed by the assessee along with the return is rejected u/s.145(3) since the asasessee failed to satisfy the conditions of correctness and completeness of the statement of account by way of filing supporting evidences. As such the assessment is being completed u/s 144 in the following manner, considering the information and documents available in the record." Similarly, the assessing officer for the assessment year 2006-07 held as follows : "Under the stated circumstances, considering th....
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....ntion to a chart for the purpose of establishing that the assessment made is not only erroneous but far too exorbitant considering the pattern of the income assessed in the earlier years and in the subsequent years. The said chart is reproduced below. Assessment Year 2003-04 2004-05 2005-06 2006-07 2008-09 2008-09 2009-10 2010-11 2011-12 2012-13 Total Turnover 77,72,032 81,60,544 3,09,55,672 1,49,31,299 1,39,03,012 3,36,27,779 3,56,36,314 4,95,51,299 6,76,41,773 8,94,32,745 Returned business income (% of Turnover) 1,35,952 (1.75% 1.61.590 (2%) 3,23,421 (1.04%) 1,95,102 (1.31%) 3,41,699 (2.46%) 1,006,108 (2.99%) 1,000,039 (2.81%) 13,63,030 (2.75%) ....
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....take into consideration local knowledge and repute in regard to the assessee's circumstances, and his own knowledge of previous returns by and assessments of the assessee, and all other matters which he thinks will assist him in arriving at a fair and proper estimate; and though there must necessarily be guess-work in the matter, it must be honest guess- work. In that sense, too, the assessment must be to some extent arbitrary. Their Lordships think that the section places the officer in the position of a person whose decision as to amount is final and subject to no appeal, but whose decision if it can be shown to have been arrived at without an honest exercise of judgment, may be revised or reviewed by the Commissioner under the powers con....
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....ion 144. The submission that in an assessment under section 144 the assessing officer can make disallowances may be correct in the backdrop that the assessee may raise contentions disputing the materials collected by the assessing officer and allowances claimed in the defence to be taken by the assessee the assessing officer may have occasion to make disallowances. He has exercised power under section 145 because the books of accounts are not believable because the books of accounts according to him are neither correct, nor complete. If the assessing officer in such a case wishes to make an assessment under section 144, he has to make such assessment only in accordance with section 144. An assessing officer is a creature of the statut....