1933 (8) TMI 2

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.... was changed a year or two ago. The assessments relating to the firm date from the year 1923-24, when the assessment was Rs. 131-3-0. The assessments were progressively enhanced in the succeeding years, till in 1930--31 the assessment was Rs. 950, on an estimated profit of Rs. 18,240. In the following year however, which is the year to which the present application relates, the assessment was raised to a total amount of Rs. 5,092-15-0 on an estimated profit of Rs. 35,600 the total assessment being made up of Rs. 4,527-1-0 plus surcharge and super-tax to the extent of Rs. 565-14-0. No return of income and profit was ever made, and the assessments were accordingly made throughout under S. 23, sub-cl. (4) of the Act. Being dissatisfied with th....

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.... and no reference lies to the High Court;" (2) in making the assessment under Section 23(4) "to the best of his judgment," the Income Tax Officer does not possess arbitrary authority to assess at any figure he likes. We can see no force in the first of the two above points inasmuch as there was, in fact, an appeal to the Assistant Commissioner of Income-tax, and it was heard by him and decided by him on merits. Whether having regard to the proviso to S. 30 (1) of the Act, an appeal really lay to the Assistant Commissioner is a point which we do not think it is necessary elaborately to discuss; there is authority in a ruling reported in A.K.A. C.T.V.V. Chettyar v. Commissioner of Income Tax for the proposition that when an Income-tax Offi....

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.... arbitrary authority to assess at any figure he likes and that although he is not bound by strict judicial principles he should be guided by the rules of justice, equity and good conscience. We need hardly say that this proposition of law appears to us to be incontrovertible, but we do not see that any good purpose will be served by our calling upon the Commissioner of Income-tax to state a case and refer it to us with a view to our giving a judicial pronouncement of our own on this point. Our reason is that as far as can be seen the Income Tax Officer made the assessment in dispute to the best of his judgment having regard to the fact that the assessee had submitted no accounts. The Income Tax Officer, in making the assessment said in his ....