COMMISSIONER OF INCOME TAX Vs. KAUSHALAYA DEVI

JUDGEMENT

(1.) THESE two references relate to the asst. yrs. 1972 -73 and 1973 - 74. Two questions have been referred to this Court by the Tribunal, Patna. They are as follows :

(2.) THE facts, in brief, are that the assessee was assessed by the ITO, Motihari, in terms of a scheme set out by the Central Government. According to the Revenue, the scheme was not applicable to ladies and minors where the returned income did not exceed Rs. 15,000 and the capital invested did not exceed Rs. 25,000. The ITO being of the view that the scheme applied to the assessee, assessed her in terms of S. 143(1) of the IT Act, 1961. The CIT, being of the view that the scheme had been wrongly applied to several assessees like the present assessee, set, aside the orders of assessment in exercise of powers under S. 263(1) of the IT Act, 1961 (hereinafter referred to as " the Act ").

(3.) THE assessee, being aggrieved by the order of the CIT, appealed to the Tribunal. The Tribunal held that the CIT under S. 263(1) of the Act could not interfere with an order of assessment made under S. 143(3) of the Act in pursuance of the scheme to help new taxpayers in small income groups launched by the Government. The assessment of the assessee was thus upheld and the order of the CIT was set aside. Similar orders were passed by the Tribunal in the cases of several ladies. One such assessee was Rambha Devi. The Revenue, being aggrieved by the order of the Tribunal, prayed for a reference to this Court and the Tribunal referred the matter in terms of s. 256(1) of the Act. In that reference, questions Nos. (1) and (4) were as follows :