DECCAN GELATINE PRIVATE LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) M/s. Deccan Gelatine (P) Ltd. sought for a certificate under section 230A of the Income-tax Act for purposes of registration of a document. The certificate was refused. That order is assailed in this writ petition. Pending admission of the writ petition, the Income-tax Officer, B-ward, was directed to file a counter. In the counter, he averred that on September 26, 1986, a search was made by the Income-tax Department and certain books were seized from the premised of the assessee, but "No books of account relating to the assessment year 1987-88 were seized". The return for the assessment year 1987-88 could be filed. If only the return is filed, it will be known whether the assessee has suppressed the income or not. It is averred that agricultural lands were sold is not accepted. The enquiry revealed that lands sold were non-agricultural lands and further : "Petitioner had also sold firewood, stones and eucalyptus trees for Rs. 6,075, Rs. 9,930 and Rs. 19,692, respectively, during the year ending on March 31, 1985. It is also notices that a poultry farm is run on the lands already sold and proposed to be sold. Around the lands sold, there are only some industrial concerns and no agricultural lands. It is submitted that the lands in question being non-agricultural lands, they are liable to be assessed under the Wealth-tax Act. The sale of acres 16-20 guntas will also attract capital gains." Therefore, the certificate was properly refused. The question in the instant case is whether the refusal of certificate under section 230A was proper. The precise question is whether there is "existing liability", and, therefore, the certificate was refused.

(2.) THE assessee cited a decision in Gopal Industrial Estate v. Income-tax Officer . In that at page 733, it is held : "Lack of co-operation in completion of the assessment is not a ground germane to section 230A(1) and it is obvious that the Income-tax officer had allowed lack of such co-operation to weigh with him in refusing to grant the certificate under section 230A(1) of the Act."