Effect of higher income estimates for assessment year 1986-87 in relation to other assessments-Clarification regarding

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....of Circular No. 423 dated 26-6-1985,* and No. 432 dated 15-11-1985,** on the above subject, fears continue to be expressed on behalf of some existing taxpayers who may declare for the purpose of payment of advance tax during the current financial year, a substantially higher income than that assessed for any earlier year and on behalf of some new taxpayers who may for the first time choose to decl....

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....antially high income cannot by itself constitute a valid ground for starting assessment proceedings for the earlier years. Thus, the question of starting any roving enquiries against such taxpayers does not arise. 3. While it is true that the penal provisions of law will hereafter be applied strictly in cases where a person having taxable income or wealth does not voluntarily come forward to decl....