1995 (5) TMI 57

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....ly the jurisdiction over the assessee's case vested with the ITO, Distt: I(5) Patiala. Notice under ss. 132(5) and 139(2) had been issued by that authority. Later on, the ITO, Distt: (4) Patiala informed the assessee vide letter dt. 8th Feb., 1988 that his case had been transferred to ITO, Distt: 1(4), Patiala vide CIT's order No. SD/127/87-88/S&S/23703 dt. 19th Jan., 1988. The assessment was framed by Asstt. CIT, Inv., Circle Patiala. It was not clarified as to how the ITO, Inv., Circle, Patiala came to assume jurisdiction. The learned counsel for the assessee submitted that s. 127 laid down conditions which had to be cumulatively fulfiled. According to him, one condition was of giving an opportunity of being heard to the assessee in the c....

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....not transferred out of Patiala but from one officer to another officer at Patiala for which communication of reasons was not necessary. 4. We have carefully considered the submissions of both the parties. In the case of Ajantha Industries & Ors., the Supreme Court struck down the transfer order on the ground that the reasons had not been communicated. In our opinion, that case is distinguishable, inasmuch as, the CBDT had transferred the case from one station to another. In the instant case, however, the case was transferred from one officer to another at Patiala. In such a situation, the non-communication of reasons, in our opinion, would not render the transfer of the case as invalid. Moreover, the High Courts and Supreme Court under th....

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....th business at a small place. The assessee disclosed income of Rs. 15,100 from cloth business by applying net profit rate of 12.5% on sales of Rs. 1,20,804. There was a search at the business premises of the assessee on 8th Dec., 1987. On the basis of certain notations in the diary, i.e., "Moti diary" seized at the time of search, the ITO noticed that the assessee had made considerable sales on various dates from 1st Dec., 1987 to 7th Dec., 1987. On the basis of such notations, he estimated the sales at Rs. 8,50,000. Since the assessee had himself shown sales of Rs. 1,20,804 the balance unrecorded sales amounted to Rs. 7,30,000 on which 10% rate was applied thereby resulting in an addition of Rs. 73,000. 6. The learned CIT(A) took note of....