VIJAY KUMAR BHATI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The assessee who is the appellant in this appeal has challenged the order of the High Court by which the High Court has purported to clarify its earlier order passed in the assessees writ petition on 21.05.1993 [reported as Vijay Kumar Bhati V/s. CIT, 1994 71 Taxman(Del) 629. Before considering the language of the order dated 21.05.1993, and the interpretation put thereon by the impugned decision, the background in which the order dated 21.05.1993, was passed is necessary.

(2.) The appellant had opened a Foreign Currency Non-Resident Account (FCNR)/SDR account in the Indian Overseas Bank, Tolstoy Marg, New Delhi and had deposited in the same year a total amount of US $ 1,35,405.00. In September, 1985, the ITO sought to provisionally attach this account under the provisions of sec. 281B of the Income-tax Act, 1961, and called upon the appellant to file his return. The appellant filed a nil return which was not accepted by the ITO. The assessment order was passed on 10.09.1985 assessing the appellants income at Rs. 10,28,928.00. The tax was levied thereon and penalty imposed and criminal proceedings initiated. The appellants appeal was dismissed by the CIT(A). The ITO then withdrew the whole amount deposited in the appellants account with the Indian Overseas Bank in two instalments namely, on 9.01.1986, and 10.06.1986.

(3.) In this background the writ petition was allowed by the order dated 21.05.1993. It is not necessary to consider the reason why the High Court allowed the writ petition as the Revenues special leave petition seeking to impugn the order dated 21.05.1993, has already been rejected by this Court.