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TMI Blog1987 (7) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... turn of income was filed admitting an income of Rs. 1,66,413. The case was taken up for disposal by the Income-tax Officer, A-Ward, Circle II, Hyderabad, and the assessment proceedings were in process. On 31-3-1986, the assessee filed another return of income titled as "revised return" declaring an income of Rs. 2,86,413 in which it disclosed a sum of Rs. 1,20,000 from other sources in addition to the business income that had been disclosed in the original return filed on 27-8-1985. The Income-tax Officer did not take into account the revised return, because the original return was not filed either under s 139(1) or under s 139(2) and, therefore, ignored the revised return and proceeded to complete the assessment on the basis of the origina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r s 139(1) or S 139(2). The assessee had by inadvertence or ignorance not superscribed the return as a return under the Amnesty scheme and the department should not exploit the ignorance or inadvertent mistake committed by the assessee to its advantage. That the return filed on 31-3-1986 by the assessee is only a return under the Amnesty Scheme would be evident from the conduct of not only the assessee but also the conduct of the partners of the assessee-firm. There are as many as ten partners and all of them had filed returns on 31-3-1986 in the counters kept open for that purpose in the Income-tax Officer and had paid the taxes thereon. These returns included therein not only the income disclosed in the original returns but also additiona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned departmental representative, submitted that there was absolutely no indication in the return filed on 31-3-1986 as to whether it is an amensty return or not. On the other hand, it was dubbed as a revised return and the Income-tax Officer was perfectly justified in ignoring this return. The Amnesty Scheme is a special scheme and the character of the return cannot be agitated under the regular provisions of the Income-tax Act. As the original return was filed beyond the time limit prescribed under s. 139(1), interest was leviable under s. 139(8). There was also liability for levy of interest under s. 215. Therefore, these matters cannot be agitated in appeal and the Commissioner of Income-tax (Appeals) rightly rejected the contentions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance or inadvertence in view of the circular of the CBDT No. 14 (XI-35) of 1955 dated 11-4-1955. We uphold his contention. The circular cited rovided that the officers of the department must not take advantage of the ignorance of an assessee as to his rights. Although the responsibility for claiming refunds and reliefs rests with the assessees on whom it is imposed by law, officers should draw the attention of the assesses to any refunds or reliefs to which they are entitled but which they have omitted to claim for some reason or other and freely advise them when approached by them as to their rights and liabilities and as to the procedure to be adopted for claiming refunds and reliefs. This position has been approved in the decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esistible conclusion that the assessee had intended the return filed on 31-3-1986 only as a return under the Amnesty Scheme. 9. In Circular No. 451 dated 17-2-1986, the Board has clarified that in case where the assessments are pending, the taxpayer should file revised return before the Income-tax Officer along with evidence of payment of taxes, and in respect of completed assessments, he must file a fresh return of income including the additional income. In reply to question No. 3, it is stated that the scheme will apply to old assessees also, whose income has escaped assessment for an earlier assessment year and whether the assessment is completed or pending. In view of these clarifications contained in the circular cited, it is rather ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Act, brought into force by the policy decisions of the government and, therefore, the assessee cannot seek any remedy before the appellate authorities. We are unable to uphold his contention. Though the return was filed under the Amnesty Scheme, the assessment process had to be only under the provisions of the Income-tax Act and once an assessment was made under s. 143, the assessee has got all the rights to object to the nature of assessment, status and also the quantum assessed. "Any order of asessment" as mentioned in s. 246(1) (c) would an order in regard to the nature of the return also. Besides, the circulars issued by the CBDT, though not binding on the Courts, are binding on the tax officers and the Honourable Andhra Pradesh Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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