COMMISSIONER OF INCOME TAX Vs. GEETA DEVI AGARWAL

JUDGEMENT

(1.) THE material facts and proceedings on record lead-up to this reference are, inter alia, that Smt. Geeta Devi Agarwal, the assessee, was assessed to income-tax for the assessment years 1971-72, 1972-73 and 1973-74, the accounting years ending on March 31, of the calendar years 1971, 1972 and 1973, under a scheme formulated by the Central Board of Direct Taxes known as "Scheme to help new taxpayers in small income groups."

(2.) THE material provisions of the scheme were, inter alia, as follows :

(3.) THE Commissioner also found that even assuming that the assessee had received gifts out of which the initial capital was accumulated, the assessee would not have kept the same idle till March 31, 1970, specially when she had invested the other gifts received by her in the said firm. THEre was also no explanation as to where the said initial capital of Rs. 16,500 had been kept by the assessee till 1971-72. THE Commissioner came to the conclusion that the affairs of the assessee had to be examined further as there was insufficient proof of the initial capital acquired by the assessee and the income returned out of such capital was unreasonably high. He found further that the Income-tax Officer did not make proper enquiries in respect of the initial capital, the nature and extent of the incomes returned and the true ownership thereof before completing the assessments. THE Commissioner set aside the assessments in each of the said assessment years and restored the proceedings to the file of the income-tax Officer with a direction to make fresh assessments after further scrutiny of the initial capital and also the actual income earned by the assessee.