ORISSA CERAMIC SALES Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) IN this writ petition the short question raised is if the Commissioner of INcome-tax while exercising jurisdiction under Section 264 of the I.T. Act, 1961, in a revision filed against the order of the ITO, was right in ignoring the direction given by the INcome-tax Appellate Tribunal ?

(2.) THE petitioner is a partnership-firm dealing in G.I. pipes, ceramic sanitary wares, etc. THE ITO did not accept the return for the assessment year 1976-77 filed by the petitioner showing its income at Rs. 31,430. Making certain additions to the figure returned, the ITO assessed the income at Rs. 40,630. THE AAC issued notice of enhancement and adjudged the income at Rs. 67,397. THE petitioner carried an appeal to the Tribunal. THE Tribunal found that the accounts produced by the assessee-petitioner were neither "correct nor complete" and hence the case attracted the provision contained in the proviso to Section 145(1) of the I.T. Act anl assessment was to be made according to best of judgment. THE Tribunal, however, did not approve the way the ITO had made the assessment and observed :