TaxTMI 
TaxTMI 
2013 (5) TMI 971
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....s relating to the issue are stated in brief. The assessee is a partnership firm and is engaged in the business of Stevedoring, Clearing & Forwarding, Shore handling and Steamer Agency etc. The assessing officer noticed that the assessee firm did not file its return of income, though the partners of the firm were declaring the share income from the firm in their respective returns of income. Hence, the assessing officer issued notices u/s 148 of the Act for both the years under consideration. In response thereto, the assessee filed the returns of income declaring income on estimated basis i.e. @ 7.5% of the gross receipts. The assessing officer after carrying out necessary enquiries, completed the assessment by estima....
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....e herein has been filing return of income for the past 4 decades. The assessments of earlier years were completed in the Central Circle of the Income-tax Department. Subsequently, one of the main partners Shri K. Gangi Reddy expired on 11.12.2004 and thereafter differences cropped up amongst the partners, which went to the level of court litigation also. On account of these reasons, the assessee could not maintain proper books of accounts and could not file returns of income also. Hence, the assessing officer issued notices u/s 148 of the Act for three assessment years, viz., assessment years 200506 to 2007-07. In response thereto, the assessee firm filed returns of income declaring an income on estimated basis....
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....y the assessing officer and hence they are outside the scope of revision proceedings. Jeewanram Choudhary Vs. CIT (2013)(84 DTR (Jd)(Trib) 317 Mookambica Constructions (ITA No.25/Vizag/2009 dt. 13.11.2009) He further submitted that the assessing officer has completed the assessment under identical fashion for the assessment year 2005-06 also at the very same point of time and the Learned CIT has thought fit not to revise the same, though the time limit for revision was very much available. 5. The Learned D.R submitted that the assessee was having two different sources of income and the assessing officer has failed to examine this aspect during the course of assessment proceedings. He further submitted that the ....
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.... to the interests of the Revenue". This provision has been interpreted by the Supreme Court in several judgments to which it is now necessary to turn. In Malabar Industrial Co. Ltd. v. CIT [2000] 243 ITR 83, the Supreme Court held that the provision "cannot be invoked to correct each and every type of mistake or error committed by the Assessing Officer" and "it is only when an order is erroneous that the section will be attracted". The Supreme Court held that an incorrect assumption of fact or an incorrect application of law will satisfy the requirement of the order being erroneous. An order passed in violation of the principles of natural justice or without application of mind, would be an or....
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....sing Officer has taken a plausible view after examining and applying his mind on it. In the instant case, we notice that the assessee herein filed its return of income on estimated basis on the plea that it did not maintain books of account. This fact was brought to the notice of the assessing officer by way of note attached to the return of income. Further, the assessee has also brought this fact during the course of assessment proceedings also to the notice of the assessing officer. On being convinced with the difficulties of the assessee, the assessing officer has also proposed to enhance the estimate made by the assessee. The Assessing Officer has also noticed the fact that the assessee has declared the ren....