MOHAN N Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE writ petition is for quashing the order of the Commissioner of Income-tax made in (C. Nos. 1411, 153 to 157 of 1982-83), dated July 28, 1984. THE relevant facts are as follows :

(2.) THEREAFTER, when the company was assessed to tax with regard to those vehicles, that was challenged by the company on the footing that it was not the owner of the buses. The Income-tax Officer did not accept the contention of the company and proceeded to complete the assessment. Aggrieved by that, the company preferred an appeal before the Appellate Assistant Commissioner of Income-tax, "A" Range, Coimbatore. By order dated March 16, 1978, the Appellate Assistant Commissioner set aside the order of assessment accepting the contention of the company that the buses have been transferred in favour of the two individuals with whom the company had entered into an agreement, viz., Elliah Chettiar and Natarajan. Consequently, the Appellate Assistant Commissioner directed a fresh assessment. Pursuant thereto, a fresh assessment was made with regard to the company and that was challenged in different proceedings by the company with regard to the quantum of tax. The Income-tax Officer issued notices to the writ petitioner under section 148 of the Income-tax Act on September 5, 1981, for the purpose of considering the income in relation to the buses which were transferred to Nataraja Chettiar, as on March 19, 1981. Nataraja Chettiar died and the petitioner is his first son. In compliance with the notice, the petitioner appeared before the officer and represented that the account books maintained by his deceased father were not available and he had no materials with him to file returns or accounts for statement of accounts. The officer proceeded to make a best judgment assessment under section 144 of the Income-tax Act. He proceeded on the footing that the buses were owned by Nataraja Chettiar and assessed the income. The orders of assessment were challenged by the petitioner in revision petitions before the Commissioner of Income-tax. The Commissioner passed an order dated July 28, 1984, rejecting the revision petitions. It is that order which is challenged in this writ petition.

(3.) TRANSFER of the aforesaid buses dated March 15, 1962, having been acceded to and the de facto ownership of the vehicles recognised and regularized with effect from the date of application for transfer on March 15, 1962, by the Road Transport Authorities, I am unable to subscribe any credence to the petitioner's claim in this respect."