INCOME TAX OFFICER Vs. GURDIAL SINGH
LAWS(IT)-1989-5-3
INCOME TAX APPELLATE TRIBUNAL
Decided on May 12,1989

Appellant
VERSUS
Respondents

JUDGEMENT

1. In this Revenues appeal the order dated 14-10-1986 passed by the Appellate Assistant Commissioner of Income-tax, Jalandhar Range, Jalandhar by which he cancelled the penalty of Rs. 4,503, which had been levied by the ITO under section 271(1) (a) of the Income-tax Act, 1961 in respect of assessment year 1981-82 on the ground that the assessee had failed in its obligation as statutorily provided in clause (f) of Explanation to section 139(9) of the Act, and, therefore, the return was invalid, is contested. - (1.)
(2.)The assessee, as in the past, filed his return on 17-8-1982 on estimate basis declaring an income of Rs. 9,000 in compliance to notice under section 139(2) of the Act. The ITO on 21-4-1983 issued a letter stating that the returns for the assessment years 1981-82 and 1982-83 were defective in the context of section 139(9) (f) of the Act. Since in respect of assessment year 1982-83 the charge that the assessee failed to comply with the statutory obligation of the said section came to be dropped it is considered necessary to notice in the order the said letter of the ITO as follows :- "To Shree Gurdial Singh s/o Shri Mohinder Singh Truck Owner, Village & Post Office Dakoha, Tehsil and Distt. Jalandhar. Dear Sir, Sub :- Defective Income-tax Returns for the Asst. Years 1981-82 and 1982-83 - Notice regarding- You have filed returns of your total income for the financial years ending on 31-3-1981 and 31-3-1982 relevant to the asst. years 1981-82 and 1982-83 on 17-8-1982 and 14-3-1983 respectively declaring total income at Rs. 9,000 and loss at Rs. 27,380. 2. As your total income returned includes major income from plying of trucks on estimate basis for which no accounts books have been maintained by you, the returns filed by you are defective as they do not contain the following information as required under section 139(9) read with Explanation (f) thereto : (1) Gross receipts. (2) Gross profit. (3) Expenses incurred (with details). (4) Net profit in accordance with the above. (5) Basis of above computation. (6) Sundry debtors. (7) Sundry creditors. (8) Stock-in-trade, if any.
You are given fifteen days time from the receipt of this notice to rectify the above defects and file the requisite information failing which the returns filed by you, as above, shall be treated as invalid." On 28-5-1983, the ITO issued notice under section 142(1) asking details of gross receipts, gross profit, expenses incurred, basis of computation of income, list of sundry debtors, list of sundry creditors, stock- in-trade, cash balance etc., in respect of the assessment year 1981-82. 3. On 30-5-1983, the ITO had addressed another communication for the assessment years 1981-82 and 1982-83 stating that the returns for both the assessment years would be considered invalid as there were non- compliance and violation of clause (f) of section 139(9) of the Act. Another communication dated 16/18-6-1983 was also issued. Still another letter of the ITO dated 29-7-1983 in respect of assessment year 1981-82 also required the assessee to comply with requirement of clause (f) of section 139(9). The assessee, however, stated that he had no information and, therefore, was unable to furnish details as required.

(3.)THEREUPON the ITO framed the assessment on estimate basis keeping in focus the earlier pattern of assessment and estimated the income from as many as five trucks, which were the same as in the immediately proceeding assessment year.


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