1980 (10) TMI 113

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..... the return that all the facts and circumstances of the case were same as submitted in his so called "revised" return for the A.Y. 1971-72 which was filed voluntarily on 4th Aug., 1977 after the original assessment was completed for that year. On the basis of the return filed on 16th Jan., 1978 for the A.Y. 1976-77 the CIT observed that the ITO completed the assessment under s. 143(3) on 18th Jan., 1978 on a total income of Rs. 35,000 taking the status as AOP. The CIT also observed that from the amount of Rs. 73,500 which was the difference between the amount received form the railways and the amount claimed and returned by the assessee in the A.Y. 1971-72, certain expenses were claimed and a net profit of Rs. 28,627 was declared. According .....

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..... g the facts and circumstances of the case, the ITO assessed the total income at Rs. 35,000 under s. 143(3). Ultimately, it was pleaded that all the documents and details were filed at the time of assessment and books of account and vouchers were also produced during the assessment proceedings. The ITO passed the assessment order after proper enquiries and after applying his mind. The CIT, after considering the above plea of the assessee, held that the order passed by the ITO was made in a hurry and without proper enquiry and as such it was prejudicial to the interests of revenue. In the result, the CIT set-aside the order passed by the ITO and directed him to make fresh assessment de-novo in the light of the observations made by him in the .....

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..... suffered, the proceedings initiated under s. 263 of the Act were not rightly initiated. Besides the above we have seen that the assessee furnished all the information relevant for the assessment and since there is a background prior to the filing of the return for the asst. yr. 1976-77 in so much so that a revised return was filed for the asst. yr. 1971-72 wherein the ITO was fully posted with the facts of the case, it cannot be said that the assessment made by the ITO on 18th Jan., 1978 was made without making proper enquiries. Besides the above, we have noted that while setting-aside the assessment made by the ITO, the CIT has given definite findings in para 3 of his order and in the face of these findings, the ITO was left with no choice .....

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