1980 (9) TMI 107

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....d filed the return, he has paid the tax due on the returned income. The tax due on the returned income, as stated earlier, was Rs. 1,04,774. But under the provision of the proviso to that sub-selection the CIT (Appeals) had power to exempt the assessee from the payment of the tax on the returned income if the CIT (Appeals) is satisfied that there were good and sufficient reasons for granting such exemption. The assessee has now come up in appeal. His contention is that in view of the facts and circumstances placed by him there was good and sufficient reason for exempting him from complying with the provisions contained in cl. (a) of sub-s. (4) of s. 249 of the Act. 2. The facts which justify the exemption, as urged by the assessee, are t....

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....me was objected to by the ITO before the CIT (Appeals) on the following grounds: "The ITO was requested by me to comment on the request made by the appellant. The ITO had pointed out that the appellant had substantial agricultural income from which the tax could have been paid before filing the appeal. The ITO has pointed out that the approximate yearly agricultural income of the appellant amounted to Rs. 70,000. It has also been pointed out that the appellant had with himself agricultural income of not less than four years before filing of the appeal. It has been claimed that the appellant had other substantial assets which could have been liquidated by the appellant to pay undisputed tax. In the opinion of the ITO there is no case to c....

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....rovisions of cl. (a) of sub-s. (4) of s. 249 of the Act fails. 4. Before us the ld. D.R. referred to a bank deposit of Rs. 9,000 and sundry debts of Rs. 90,000 shown by the assessee in the wealth-tax return for the asst. yr. 1976-77. According to the ld. Counsel for the assessee all these amounts were frozen under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976. But apart from that we are not satisfied that this sundry debts could have been converted into cash and the tax paid. We are sure that if the amounts represented by the sundry debts could have been realised the Department would definitely have taken steps for the realisation of the tax from the debtors. The tax payable as per the assessment orde....