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TMI Blog1977 (2) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... rections to the other Income-tax authorities as it may deem fit for the proper administration of the said Act and such authorities are bound to observe and follow such orders, instructions and directions of the Board. The Board is also empowered to issue, whether by way of relaxation of any of the provisions of ss. 143, 144, 147, 148 and 271 etc. Or otherwise, general or special orders in respect of any class of incomes or class of cases. 4. In October, 1972, the Central Board of Direct Taxes, acting under s. 119 of the Income-tax Act, 1961, launched a scheme for mass communication with a view to encouraging new assessees in small income groups to furnish their returns of income voluntarily if the income did not exceed Rs. 15,000. The Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d her initial capital at Rs. 15,000 and stated that she had derived the aforesaid income from pawn brooking business. An Inspector of the Income-tax dept. was deputed by the Income-Tax Officer to make an enquiry into the affairs of the assessee. He reported that the assessee did carry on the pawn brooking business and that she derived income from this business. His report dated 16th Dec., 1972 was as follows:- "Conducted enquiries on 14th Dec.,1972 from the local people of Sikta as well as at Sikta by me. The following particulars were obtained. She was married 35 years ago. Her father was a renowned Baidya of Sarayaganj namely Pyarelal Narsaria, who has good business in practice as well as from selling of Ayurvedic medicines. 14 years ago ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccepted the initial capital of Rs. 15,000 and the existence of the pawn broking business of the assessee without enquiry; (ii) that the income shown by the assessee for the first year at Rs. 5,500 on the capital of Rs. 15,000 was absurd and that the assessee could not keep the capital of Rs. 15,000 idle even if she had saved the same out of the gifts received by her; (iii) that the income in question represented the concealed income of the assessee's husband and that she had declared the same to accommodate him; and (iv) that, though the assessee had invested her accumulated capital in the firm of M/s. Ganesh Rice Mills, the same, in fact, belonged to her husband and that she was a mere benamidar. 7. Accordingly, the Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax erred in holding that the Income-tax Officer had completed the assessments without enquiry into the initial capital and the existence of the business of the assessee; (ii) that the Commissioner of Income-tax violated the principles of natural justice and exercised his powers under s. 263(1) of the Income-tax Act, 1961 on bare suspicion; (iii) that the orders of the Income-tax Officer were not erroneous or prejudicial to the interests of the revenue so as to enable the Commissioner of Income-tax to assume jurisdiction under s. 263 (1) of the Income-tax Act, 1961; and (iv) that the Commissioner of Income-tax was not legally competent to reopen or revise the assessments under s. 263 of the Income-tax Act, 1961 which had been made in acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eproduced above, the assessee belonged to a well-to-do family and her father carried on business in Ayurvedic medicines. It was also reported by the Inspector that the assessee received sufficient cash presents from her father, mother and relatives and also from her father-in-law's side. It is also in the report of the Inspector that the enquiries made by him revealed that the assessee carried on money lending and pawn broking business and that her husband also owned some agricultural land. Thus, it was on the basis of this report of the Inspector of the Income-tax Department that the Income-Tax Officer accepted the income returned by the assessee. Obviously, therefore, the conditions laid down for enjoying the benefit under the scheme evol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not legally competent to reopen or revise the assessments made by the Income-tax Officer in pursuance of the scheme "to help the small tax-payers in the small income groups." This very point, along with some other issues arose before the Income-tax Appellate Tribunal, Patna in a similar case of Smt. Rambha Devi vs. ITO(4) In that case, similar assessments were made by the Income-tax Officer under the aforesaid scheme and the Commissioner of Income-tax, in similar circumstances, set aside the assessments under s. 263 (1) of the Income-tax Act, 1961 and directed the Income-tax Officer to reframe the assessments after making fresh enquiries. On appeal, the Income-tax Appellate Tribunal, Patna, by a majority of opinion, held that the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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