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TMI Blog1990 (4) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... t Bangalore for the 1985-86 Academic Session after paying a donation of Rs. 30,000. He filed returns for the assessment years in question, under the Amnesty Scheme the details of which will be clear from the following table :-- --------------------------------------------------------------------------------------------------------------------------------------------------- Asst. Year Date on which Gross Income return was filed declared from Private tuitions and coaching --------------------------------------------------------------------------------------------------------------------------------------------------- 1983-84 6-3-1986 Rs. 22,000 1984-85 6-3-1986 Rs. 24,000 1985-86 6-3-1986 Rs. 25,000 1986-87 15-7-1986 Rs. 22,000 --------------------------------------------------------------------------------------------------------------------------------------------------- These returns were accepted by the Income-tax Officer and assessments were completed under sec. 143(1) on 7-3-1986 for the first three years and on 8-9-1986 for the assessment year 1986-87. Along with the return the assessee had filed statements of income showing how there was an opening capital o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions and therefore he would have secured admission in the Engineering College at Bangalore which was far away from Meerut, by paying a donation of Rs. 30,000. He observed that there was no evidence that any money was earned by the assessee actually from tuitions and coaching. He also did not accept the assessee's submission that assessments completed under the Amnesty Scheme could not be revised under sec. 263. In this connection, reliance was placed by him on the answer to question No. 11 in Board's Circular No. 451 and he took the view that the scheme had provided disclosure of actual income and not 'benami' income. He took the view that disclosure under the Voluntary Disclosure Scheme did not preclude enquiries into the genuineness of the cash credits and their assessments. He also observed that assessee was only a second class student of Intermediate who could not possibly earn income from tuition to the extent of Rs. 10,000 in the assessment year 1980-81 when the assessee was only 16 years of age. Placing reliance on the decision of the Supreme Court in the case of Smt. Tara Devi Aggarwal v. CIT [1973] 88 ITR 323, he held that the assessments were erroneous in so far as they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oving enquiries will be made. The circular also stated that instructions were being issued to all officers of the department that they should adopt a liberal and sympathetic approach where the assessee had come forward suo motu and co-operated with the department. The assessees were told that they would do well to avail themselves of this opportunity and file returns of income without any fear. Circular No. 439 dated 15-11-1985 which appears at page 163, exhorted the taxpayers liable to wealth-tax that they should avail of this opportunity to come forward and file returns of wealth showing their true wealth irrespective of what they might have done earlier. Circular No. 440 dated 15-11-1985 appears at page 164 and it exhorted that taxpayers should not hold back their true incomes and that they should come forward with a true disclosure without unfounded fears that if a high income for the current year was shown, the Income-tax Officer may automatically assume in future years that he should make similar high income in those years also. Circular No. 441 also dated 15-11-1985 is reproduced at page 165 in which again the assessees were assured that roving enquiries would not be made in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be disturbed u/s. 143(2) (b) or 154 under any circumstances." This shows that the Income-tax Officer could also not take any action in respect of these assessments under sec. 143(2)(b). Then there is the following observation of member (R A) quoted in Circular No. 176 dated 25-8-1987 (Photostat copy at Page 22 of assessee's paper book) which are stated to reflect the views of the Board on the subject with reference to the guidance sought by Commissioners as to whether remedial action u/s. 263 could be taken in cases completed under "Summary Assessment Scheme" where glaring and apparent mistakes in computation of income had been detected resulting in substantial loss of revenue :-- "No remedial action is necessary in summary assessment cases, as the revenue loss if any is consciously suffered by the Government to utilise resources for scrutiny and investigations of larger cases. In such cases, CIT should only inform audit that the cases are completed under the Summary Assessment Scheme." The above circular of the Board shows that excepting those cases where scrutiny had been made, in all other cases wherein assessments were made under sec. 143(1), no action under sec. 263 w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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