1983 (8) TMI 48

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.... the Commissioner of Income-tax while exercising jurisdiction under s, 264 of the I.T. Act, 1961, in a revision filed against the order of the ITO, was right in ignoring the direction given by the Income-tax Appellate Tribunal? The petitioner is a partnership-firm dealing in G.I. pipes, ceramic sanitary wares, etc. The ITO did not accept the return for the assessment year 1976-77 filed by the p....

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....n the earlier years. The assessee, in our opinion, should not be worse off merely because it maintained partial accounts than an assessee who maintained no accounts at all Hence, we are of the opinion that the accounts produced by the assessee had to be rejected under the proviso to section 145(1) and a fair estimate had to be made by the Income-tax Officer on the basis of comparable cases ...........

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....account. He held that the claim on the ground of breakage was a fictitious one and was " a claim for the second time in the trading account ". Adding the said amount to the profit shown by the petitioner and a further sum of Rs. 1,048 towards income-tax payment, the Commissioner determined the income at Rs. 66,160. Though it was urged before the Commissioner that comparable cases should be taken i....

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....The jurisdiction of the ITO, therefore, was circumscribed by the said direction. The ITO was obliged to complete the assessment by scrupulously following the said direction of the Tribunal. As the ITO did not complete the assessment adhering to the said direction, the petitioner made a grievance before the Commissioner. The scope of the revision, therefore, was whether the ITO erred in law by stra....