Filing of return of income-New assessee-Declaration of substantial income in the initial assessment year-Effect thereof in earlier years-Clarification regarding

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..... r No.432 Dated 20/9/1985 The Finance Act, 1985, has, with the objective of securing better tax compliance, simplified the direct tax laws and rationalised the rates of personal income-tax. The Department is also accepting all returns of income filed by non-corporate assessees up to Rs. 1 lakh. A public circular has been recently issued stating that simply because a taxpayer has filed a high .....

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..... have been clearly enunciated in a number of decisions of various High Courts and the Supreme Court. These principles apply as much to new assessees as to existing assessees. According to these principles, the mere declaration of substantial income for a particular year, even if it is done for the first time, cannot by itself constitute a valid ground for the opening or reopening of any earlier ass .....

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..... , etc., instructions are being issued to all officers of the Department that they should adopt a liberal and sympathetic approach where the assessee has come forward suo motu and co-operates with the Department. Assessees will do well to avail themselves of this opportunity and file returns of income without any fear. Even if it is for the first time, they should do so as early possible. (Sd.) M .....

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