Revisionary power upheld where hurried assessments lacked proper enquiry and fresh assessment was directed after notice.

Revisionary power was upheld where assessments were made hastily without proper enquiry into jurisdictional facts, the truth of the returns, the alleged residence and business address, and the source and genuineness of the initial capital. Notice of the specific grounds had been given, but the assessee failed to produce satisfactory evidence; accordingly, the Commissioner's order under section 33B setting aside the assessments and directing fresh assessment was sustained. The challenge based on breach of natural justice and alleged lack of bona fides failed because the Commissioner's preliminary enquiries and prima facie observations did not show that issues were decided behind the assessee's back or for an impermissible purpose.

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Issues: Whether the Tribunal was justified in upholding the Commissioner's order under section 33B setting aside the assessments and directing fresh assessments; and whether the Commissioner's action was vitiated by breach of natural justice or lack of bona fides.

Analysis: The assessments were made hurriedly in the case of a new assessee without proper enquiry into the truth of the returns, the correctness of jurisdiction, the alleged residence and business address, and the source and genuineness of the initial capital said to arise from sale of ornaments. The assessee was put on notice of the specific grounds and failed to produce satisfactory evidence to meet them. The Commissioner's reference to preliminary enquiries and prima facie observations did not amount to deciding matters behind the assessee's back, nor did it establish collusion or an impermissible purpose. The question of initial capital remained relevant to the subsequent assessment years because it formed the basis of the later business income.

Conclusion: The Tribunal was justified in sustaining the Commissioner's revisionary order and the challenge based on natural justice or alleged lack of bona fides failed.

Final Conclusion: The reference was answered by affirming the Commissioner's power to cancel the assessments and require fresh assessment after proper enquiry.

Ratio Decidendi: Where an assessment is made without proper enquiry into material jurisdictional and evidentiary facts and is prejudicial to the revenue, the Commissioner may validly exercise revisionary power to set it aside and direct a fresh assessment after notice to the assessee.

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