TaxTMI 
TaxTMI 
2008 (7) TMI 285
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.... end of the relevant Assessment Year, the burden is on the Revenue to establish that any one of the conditions stipulated by the proviso to section 147 of the Act stands fulfilled so as to vest the respondent-authority with jurisdiction, but the respondent-authority has failed to establish the jurisdictional facts. 2. The facts which are not in dispute are that on 23-10-1992, a return of income declaring loss of Rs. 9,17,411/- was filed by the petitioner in relation to the proprietary business carried on in the name of Shyam Traders. The assessment came to be framed under section 143 (3) of the Act on 31-01-1995, assessing the loss at Rs. 8,41,205/-. The impugned notice dated 17-03-1999, has been issued after recording reasons which read....
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....e, the petitioner had placed a note which reads as under: "Notes: - There was a fire in the business premises of Ambica Vijay Cotton Ginning & Pressing Factory on 25-4-1991. At that time, 200 bales of cotton belonging to me were burnt away. I had insurance policies to the extent of Rs. 8 lacs with New India Insurance Company. I had put up a claim along with other dealers. As the claim was not settled with the company, a complaint was made under the Consumer Protection Act. Thereafter, a regular complaint has been filed at No. 66/92. The Company has replied on 17-7-1992. The company has not made any settlement so far. As nothing is received so far, the value of burnt bales of cotton has been claimed as loss. When the compensation is settl....
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....ce company. The petitioner-assessee had failed to show the said amount as income despite the fact that the petitioner maintained the books of account on mercantile system of accounting. Therefore, the impugned notice was rightly issued by the respondent-authority. In support of the submissions, reliance was placed on order dated 20-10-1993 made by Consumer Disputes Redressal Commission in Complaint No. 66 of 1992, with special reference to the report of the surveyor, one Shri U. R. Shah of the insurance company wherein the surveyor has assessed the value of the damaged bales after deducing the salvage and adding the fire-fighting costs and resorting to exclusion clause, and held the entitlement of the complainant i.e., the petitioner at Rs.....
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....year 1992-93 considering the fact that the order of the Commission was not in existence during the relevant accounting period i.e. 01-04-1991 to 31-03-1992. Secondly, even if the said order is read, it is apparent that the Commission itself has recorded, after recording the assessment made by the surveyor of the insurance company, the complainant did not accept the assessment. This is a statement of fact recorded by the Commission. The respondent-authority could not have, therefore, even prima facie formed an opinion that such an amount had accrued as income in the hands of the petitioner-assessee merely because the Surveyor of the insurance company had worked out some figure. In fact, the order itself records that the insurance company has....