Effect of higher estimates of income for purposes of advance tax in financial year 1985-86 on assessment in relation to earlier years-Clarification regarding

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..... 23 Dated 26/6/1985 The Finance Act, 1985, has, with the objective of securing better tax compliance, rationalised the rates of personal income-tax. Fears have, however, been expressed that where a taxpayer declares, for purposes of payment of advance tax during the current financial year, a substantially higher income than that assessed for any earlier year, the Income-tax Officer may suspe .....

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..... essments for past years. In terms of the principles enunciated in these decision, the mere declaration, for purposes of payment of advance tax, of a much higher income than that assessed for any earlier year, will not constitute a valid ground for re-opening the assessment for any earlier year, or for starting roving inquiries against the taxpayer in any pending assessment proceeding. 3. Clarifi .....

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..... his concealed income, prior to its detection by the Income-tax Officer, and then make an application to the Commissioner of Income-tax for the reduction or waiver of penalty and interest under section 273A of the Income-tax Act. (Sd.) O.P. Srivastava, Director, Central Board of Direct Taxes. - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - ta .....

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