TaxTMI 
TaxTMI 
1990 (4) TMI 95
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....rn dated 26-7-1985. 3. However the Commissioner of Income-tax, Meerut, being prima facie of the view that these assessments were erroneous insofar as they were prejudicial to the interests of the revenue, served the assessee with a consolidated notice dated 19-1-1987 under section 263. He noticed that the ITO had accepted the following cash credits without any enquiries, regarding the identities of the depositors, their capacities and the genuineness of the cash credits by acting merely on the basis of the confirmatory letters filed along with the letters :--- Sl. No. Name of the depositor Amount of deposit A.Y. 1984-85 A.Y. 1985-86 1. Smt. Shakuntala Devi Rs. 10,000 Rs. 28,500 2. Smt. Uma Devi Rs. 10,000 Rs. 31,000 3. Nir....
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....nts including income and expenditure account showing all the incomings and outgoings of the investments as well as the certificates of loans etc. had been filed. It was said that in terms of Circular No. 423 dated 26-6-1985 no roving enquiries could be made. However, the learned Commissioner did not accept these submissions. He held that there was no circular giving Amnesty to the assessees that the assessments completed under section 143(1) could not be reopened. He held that no enquiries whatsoever had been made by the ITO. Relying upon the answer to question No. 11 in CBDT Circular No. 451 dated 17-2-1986, the learned Commissioner observed that tax-payers who tried to introduce black money and benami investments in the names of ladies or....
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....ns :--- (1) J.P.Srivastava & Sons (Kanpur) Ltd v. CIT [1978]. 111 ITR 326 (All.) (App) (2) CIT v. Cotton Fabrics Ltd. [1981] 131 ITR 99 (Guj.), (3) CIT v. Shantilal Agarwalla [1983] 142 ITR 778 (Pat.), (4) CIT v. K. Ramaiah, K. Ramakrishna Murthy [1986] 159 ITR 929 (AP), (5) Venkatakrishna Rice Co. v. CIT [1987] 163 ITR 129 (Mad.), (6) CIT v. Trustees Anupam Charitable Trust [1987] 167 ITR 129/31 Taxman 335 (Raj.), (7) CIT v. Punalur Paper Mills Ltd. [1987] 34 Taxman 268/[1988] 170 ITR 37 (Ker.), and (8) CIT v. Saroj Devi [1989] 178 ITR 598/44 Taxman 143 (All.). On the other hand, the learned Departmental Representative Shri S.P. Jain strongly relied upon the order of the learned Commissioner. 5. I have considered....
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....h had taken place on 21-7-1986 (relevant to the A.Y. 1986-87). He could not do so. Even if for the sake of argument, one were to proceed on the basis that sufficient enquiries as the nature of the case provoked, were not made by the ITO while completing the assessment order dated 29-11-1984 for the A.Y. 1984-85, the said exercise would become purely academic on account of the following masons :--- (1) In the case of the ladies at Sl. Nos. 1, 2, 3, 4 & 7 where assessments had been completed, the Commissioner had taken action under section 263 and the Appellate Tribunal had quashed those actions, copies of the orders of the Tribunal having been placed by the assessee on the paper book. (2) The ladies had filed their affidavits on 14-10-....