JUDGMENT: SALEEM AKHTAR, J.--1. The department has filed application under section 66(1) of the Income-Tax Act raising the following questions:- "(1) Whether on the facts and in the circumstances of the case the Income-tax Appellate Tribunal was justified in directing the Income-tax Officer to accept the return of income filed under Self Assessm ent Scheme when the said Scheme is no bar for the Income-tax Officer to proceed under normal law and discretion is vested in the Income-tax Officer by rule 46 of the Income Tax Rules regarding Self-assessm ent procedure?
(2) Whether on the facts and in the circumstances of the case the Income-tax Appellate Tribunal was justified in directing the Income-tax Officer to accept the return of income filed under Self Assessm ent Scheme when no books of accounts were maintained by the assessee?".
2. The respondent derives income from the property and from horse racing. For the assessment year 1970-71 the assessee filed his return declaring the total income of Rs, 22,993 under the Self Assessm ent Scheme. The Income-tax Officer, however proceeded under section 23(3) and computed the total income of Rs, 35,600. The respondent filed an peal before the learned Income- tax Appellate Tribunal, who allowed it, and remanded the case back to the Income-tax Officer for passing a fresh order on the basis of the return filed under Self Assessment Scheme and if he wanted to reject the return of income he must give good reason for it.
3. The admitted position is that the respondent had filed return under the Self Assessment Scheme. In his order the Income-tax Officer has nowhere pointed out that the provisions of this Scheme have not been complied with by the respondent. In these circumstances, the Income-tax Officer was not justified in resorting to assessment under section 23(3) of the Income-tax Act. This legal position is not disputed by the learned counsel for the department. We, therefore, answer both the questions in the affirmative.
4. Reference answered.