1988 (3) TMI 57 - HC - Income Tax

Summary

Issues involved: Assessment orders passed by Income-tax Officer under the scheme 'to help the new taxpayers in the small income groups'; Validity of impugned order of Commissioner of Income-tax; Legality of setting aside an order of assessment made under section 143(1); Cancellation of consolidated order passed by Commissioner of Income-tax under section 263(1).

Summary:
The High Court of Patna addressed references concerning assessment years 1968-69 to 1972-73. The first issue revolved around whether the Tribunal correctly determined that assessment orders, made under the new taxpayer scheme, were not erroneous to allow the Commissioner of Income-tax to invoke jurisdiction u/s 263(1). The Court, citing previous decisions, ruled in favor of the Revenue, stating that the Commissioner was within his powers to act under the Income-tax Act.

The second issue questioned the validity of the Commissioner's order, alleging it was based on surmises and conjectures. Drawing parallels to a previous case, the Court found that the order was not speculative but a logical deduction based on the lack of evidence regarding the source of initial capital investment. Consequently, the Court ruled in favor of the Revenue on this issue as well.

The third issue, ancillary to the first two, was decided in favor of the Revenue following the rulings on the preceding matters. The final issue pertained to the cancellation of the consolidated order by the Tribunal, which the Court deemed incorrect. Therefore, all four questions were answered in favor of the Revenue, with no costs imposed.

The Court directed the transmission of the order to the Assistant Registrar, Income-tax Appellate Tribunal, Patna, in accordance with the Income-tax Act.