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Issues Involved:
1. Validity of the jurisdiction assumed by the Income-tax Officer under section 34 of the Indian Income-tax Act, 1922. 2. Validity of the reassessment for the year 1948-49 made by the Income-tax Officer. Detailed Analysis: 1. Validity of the jurisdiction assumed by the Income-tax Officer under section 34 of the Indian Income-tax Act, 1922: The primary issue was whether the Income-tax Officer could validly assume jurisdiction to reassess the assessee's income for the assessment year 1948-49 by serving a notice under section 34 of the Indian Income-tax Act. The notice, served on March 14, 1956, was issued based on information that a house had been purchased in the name of the assessee's wife for Rs. 35,000 on June 19, 1947. The assessee argued that the notice was invalid as it mentioned the year ending March 31, 1948, instead of the correct assessment year 1948-49. The Tribunal initially found in favor of the assessee, holding that the notice was for the assessment year 1947-48 and not for 1948-49. However, upon review, it was determined that the mention of the year ending March 31, 1948, was an obvious clerical error. The notice was understood by the assessee to be for the assessment year 1948-49, as evidenced by the return filed and the petition for extension of time, both referencing the year 1948-49. The court held that the clerical mistake did not mislead the assessee and did not invalidate the notice. The jurisdiction was rightly assumed by the Income-tax Officer, as the notice was issued after obtaining the necessary sanction from the Commissioner, which was based on the facts of the case for reassessment of the income for the year 1948-49. 2. Validity of the reassessment for the year 1948-49 made by the Income-tax Officer: The reassessment was challenged on the grounds that no valid notice under section 34 had been issued or served for the assessment year 1948-49. The assessee contended that the reassessment was invalid and without jurisdiction. The court, however, found that the reassessment was valid. The notice, despite the clerical error, was effectively for the year 1948-49, and the assessee was not misled by this error. The reassessment proceedings were initiated correctly, and the Income-tax Officer had the jurisdiction to reassess the income for the year 1948-49. The court distinguished this case from others cited by the assessee, such as the decisions in Commissioner of Agricultural Income-tax v. Sultan Ali Gharami, Commissioner of Income-tax v. Ramsukh Motilal, Commissioner of Income-tax v. Maharaja Pratap Singh Bahadur, and Y. Narayana Chetty v. Income-tax Officer. These cases involved situations where the statutory requirements for issuing notices were not met, rendering the notices invalid. In contrast, the present case involved a clerical error that did not affect the validity of the notice or the jurisdiction of the Income-tax Officer. The court also referenced the decision in Commissioner of Income-tax v. K.M.N.N. Swaminathan Chettiar, where a similar clerical error in a notice was deemed to have been waived by the assessee, and the reassessment was upheld as valid. Conclusion: The court concluded that the notice issued under section 34, despite the clerical error, was valid and the reassessment for the year 1948-49 was lawful. The question of law was answered in the negative, in favor of the department and against the assessee. The Commissioner of Income-tax was entitled to the costs of the reference, assessed at Rs. 250. Separate Judgment: RAMASWAMI C.J. concurred with the judgment delivered.
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