LAKSHMI JEWELLERY Vs. ASSTT. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal by the assessee is against the order of the Assistant Commissioner, SIC -I, Coimbatore, dated 30 -3 -1996, passed under section 158BC of the Income Tax Act, 1961. The grounds of appeal filed with the memorandum of appeal were in various pages containing statement of facts as well as arguments. The assessee's counsel was asked to file concise grounds of appeal and he filed grounds of appeal as well as written submissions. The learned Departmental Representative has also filed written submissions.

(2.) WE have carefully considered the written submissions, material on record and the issues argued by both the parties. The first ground raised by the assessee is to the effect that the assessment is violative of the provisions of the Income Tax Act and the principles of natural justice. It is argued by the learned counsel for the assessee that the assessee -firm was not given a reasonable opportunity with regard to various issues covered by the assessment order. According to the learned counsel section 159BG of the Income Tax Act provides that no order under section 158BC shall be passed without the previous approval of the Commissioner or Director of Income Tax, and this requires that the Commissioner should issue a pre -assessment notice and give the assessee a hearing. It is argued that though a letter was issued by the Commissioner to the assessee, the same did not satisfy the requirements of pre -assessment notice. It is contended that the prescribed procedure for making a block assessment in the instant case was not followed and the assessing authority has determined the alleged undisclosed income without taking into account the income declared and assessed in respect of various years.

(3.) THE learned Departmental Representative, on the other hand, argued that proper opportunity of hearing was given to the assessee at various stages of assessment and the assessee had also given due explanation of seized documents and was also supplied with the copies of statements, and therefore, the assessee cannot allege any lack of opportunity. It is also stated by the learned Departmental Representative that it is not necessary for the Commissioner to issue a pre -assessment notice because there is no such requirement in the Act. According to the learned Departmental Representative even the Commissioner is not required to give personal hearing to the assessee before approving the assessment order passed under section 158BC.