COMMISSIONER OF INCOME TAX Vs. SETH MANICKLAL FOMRA

JUDGEMENT

(1.) IN this reference under Section 256(1) of the INcome-tax Act, 1961, the following question has been referred :

(2.) THE assessee was carrying on business in cloth at Madurai and a business in purchase and sale of sugar in Madras. For the assessment year 1961-62, corresponding to the previous year 1960, the Income-tax Officer determined the income from the cloth business on the basis of the books of account at Rs. 8,204. Finding that regular books of account had not been kept for the business of sugar, he estimated the income from this source at Rs. 15,000. Accordingly, the total income was thus determined at Rs. 23,204 by an order dated February 14, 1964.

(3.) THE Appellate Assistant Commissioner, in his order dated June 19, 1964, after pointing out some of the aspects which were not taken into account by the Income-tax Officer in estimating the income from the business in sugar, ultimately held " after gathering all these materials, the assessment should be re-done in accordance with law and after giving a suitable opportunity to the appellant's representative. In the result the assessment is set aside and the Income-tax Officer is directed to re-do the same in the light of the above observations."