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Assessment validity based on notice under Section 43 and Section 34 of the Income-tax Act. Analysis: The judgment pertains to a case where the applicants were declared as agents of a non-resident assessee, and a notice under Section 43 was issued. The applicants contended that the assessment was invalid as no notice was served under Section 43 or Section 34 for the subsequent assessment year. The court noted that each assessment year is self-contained, requiring notices under Section 43 for each year. The applicants admitted their agency status for the following year by filing a return, making the notice unnecessary. The court cited a previous case where an agent paid tax without notice and was held liable due to not disputing the assessment. Thus, the absence of a notice under Section 43 did not invalidate the assessment. Regarding the contention on the necessity of a notice under Section 34, the court explained that assessment proceedings are initiated by a public notice under Section 22(1), and personal notices under sub-section (2) are not obligatory if a public notice is issued. As the applicants voluntarily filed a return without an individual notice, the court found no basis for the requirement of a notice under Section 34. The court clarified that Section 34 notices are essential only if no return is filed by the assessee by the end of the assessment year. Since the applicants submitted a return, the question of assessment escaping did not arise, making a notice under Section 34 unnecessary. In conclusion, the court upheld the validity of the assessment based on the return filed by the applicants, rejecting the contentions raised regarding the notices under Section 43 and Section 34. The court answered the questions referred by the Tribunal negatively, holding the applicants liable for the costs of the reference. Additionally, the court emphasized the importance of including the Tribunal's judgment in the submission of paper books for future references to ensure a comprehensive understanding of the legal issues involved.
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