Effect of higher estimates of income for purposes of advance tax in financial year 1985-86 on assessment in relation to earlier years-Clarification regarding

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....1985 The Finance Act, 1985, has, with the objective of securing better tax compliance, rationalised the rates of personal income-tax. Fears have, however, been expressed that where a taxpayer declares, for purposes of payment of advance tax during the current financial year, a substantially higher income than that assessed for any earlier year, the Income-tax Officer may suspect that income charg....

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....rs. In terms of the principles enunciated in these decision, the mere declaration, for purposes of payment of advance tax, of a much higher income than that assessed for any earlier year, will not constitute a valid ground for re-opening the assessment for any earlier year, or for starting roving inquiries against the taxpayer in any pending assessment proceeding. 3. Clarification has also been s....