COMMISSIONER OF INCOME TAX Vs. DEVI

JUDGEMENT

(1.) THIS Reference under S. 256 (1) of the IT Act (hereinafter to be referred to as the Act) relates to the asst. year 1971 -72. The assessee is a lady. The questions referred to us for out opinion are as follows : 1. Whether, on the facts and in the circumstances of the case, the Tribunal has rightly held that the assessment order, having been passed by the ITO after necessary enquiries in pursuance of the

(2.) THE present Reference is fully covered by our decisions in the cases of the CIT, Bihar -II, Patna vs. Pushpa Devi (Taxation Case Nos. 93 to 98 of 1978) disposed of on 13th June 1986) ( since reported in (1986) 56 CTR (Pat) 251) and the CIT, Bihar -II, Patna vs. Smt Rambha Devi (Taxation Case Nos. 21 to 23 of 1978 disposed on the 4th Sept., 1986).

(3.) THE points falling for consideration in this Reference were identical with those in the case of Pushpa Devi (supra) and Smt. Rambha Dev (supra). In those cases, we held that the Scheme did not apply to ladies and minors. In our view the ITOs were obliged to act in terms of S. 143 (1) of the Act and to enquire into the source of initial capital investment. We also held that the decision of the Tribunal in the case of Smt. Rambha Devi vs. ITO (IT Nos. 1713 to 1715 of 1974 -75) have not been correctly decided. We are of the same view in this reference. The reference must, therefore, be answered in favour of the Revenue.