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TMI Blog1989 (5) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... stances we proceed to dispose off these appeals ex parte. We have been assisted by the learned Departmental Representative. 3. The brief facts of the case are that for the asst. yrs. 1980-81 and 1981-82 the assessee filed certain returns which out of time. These were subsequently regularised by issue of notices under s. 148. The assessee give in writing to the ITO that the returns already filed may be treated as having been filed in response to notices under s. 148. Even after the issue of notice under s. 148 the ITO proceeded to make assessments under s. 143(1) in respect of both the years. Thus, incomes returned were accepted by the ITO without making any enquiries or investigations. The learned CIT called for and examined the assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned counsel for the assessee submitted some information before the CIT. It was stated that the assessee purchased a flat inHalwasiya Court, Hazrat Ganj.Lucknowfor Rs. 86,360 in Sept., 1979 and this was financed through over drafts against FDRs, bank loans, etc. It was also stated that the assessee purchased FDRs worth Rs. 88,128. The dates of purchase of these FDRs was, however, not intimated. In view of the above acquisition of properties, FDRs, etc., the CIT was of the view that the ITO should have made enquiries before completing the assessments particularly when the assessments had been opened under s. 148. The ITO, however, did not make any enquiry and completed the assessments in a summary manner. The assessments were considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that the CIT was competent to invoke the provisions of s. 263 and direct the ITO to reframe the assessments after making proper enquiries as the orders passed by the ITO were erroneous and prejudicial to interest of Revenue. 5. We have considered the submissions made by the learned Departmental Representative and have perused the record. The assessee s returns clearly showed income from properties and indicated payment of interest to certain parties. No details regarding the location of the properties, investments made therein the amount of loans raised, the amount of interest paid to each party etc., were indicated in the returns. The ITO for these reasons should have been quick to make proper enquiries regarding the acquisition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mum amount of evidence may be adopted by a civil Court in the absence of any rebuttal. TheCivil Courtis neutral. It simply gives decision on the basis of the pleading and evidence which comes before it. The ITO is not only an adjudicator but also an investigator. he cannot remain passive in the face of a return which is apparently in order but calls for future inquiry. It is his duty to ascertain the truth of the facts stated in the return when the circumstances of the case are such as to provoke an inquiry. It is because it is incumbent on the ITO to further investigate the facts stated in the return when circumstances would make such an inquiry prudent that the word "erroneous" in s. 263 includes the failure to make such an enquiry. The o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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