Effect of higher income estimates for assessment year 1986-87 in relation to other assessments-Clarification regarding

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..... t despite the issue of Circular No. 423 dated 26-6-1985,* and No. 432 dated 15-11-1985,** on the above subject, fears continue to be expressed on behalf of some existing taxpayers who may declare for the purpose of payment of advance tax during the current financial year, a substantially higher income than that assessed for any earlier year and on behalf of some new taxpayers who may for the first .....

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..... rent year, of a substantially high income cannot by itself constitute a valid ground for starting assessment proceedings for the earlier years. Thus, the question of starting any roving enquiries against such taxpayers does not arise. 3. While it is true that the penal provisions of law will hereafter be applied strictly in cases where a person having taxable income or wealth does not voluntaril .....

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..... opportunity and file estimates of advance tax based on true incomes for the current year as also disclose the consequential increased wealth without any fear. 5. Taxpayers will appreciate that such immunity from probing into the past and from penalty and prosecution cannot be extended permanently. It will be available only to such persons who come forward and show their true incomes and wealth .....

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