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Issues Involved:
1. Jurisdiction of the Appellate Assistant Commissioner under Section 31(3)(b) of the Indian Income-tax Act. 2. Validity of the assessment made on January 24, 1952, in the status of an individual. 3. Applicability of the limitation period under Section 34 of the Indian Income-tax Act. 4. Constitutionality of the second proviso to Section 34(3). Issue-Wise Detailed Analysis: 1. Jurisdiction of the Appellate Assistant Commissioner under Section 31(3)(b) of the Indian Income-tax Act: The primary issue was whether the Appellate Assistant Commissioner (AAC) had the jurisdiction to direct a fresh assessment on an individual when the original assessment was made on a Hindu undivided family (HUF). The court noted that the AAC had the authority under Section 31(3)(b) to set aside an assessment and direct the Income-tax Officer (ITO) to make a fresh assessment after determining the status of the appellant. The court concluded that the AAC did not exceed his jurisdiction as he directed the ITO to determine the status and assess the income accordingly. Therefore, the subsequent order assessing the income as that of an individual was within jurisdiction. 2. Validity of the assessment made on January 24, 1952, in the status of an individual: The court held that the assessment made on January 24, 1952, was valid. It was observed that the appellant had himself filed the return in the status of an individual. The AAC's direction to reassess after determining the status was complied with by the ITO, who assessed the income in the hands of the individual. The court rejected the argument that the AAC could only direct reassessment of the HUF, noting that the appellant was present before the AAC in both capacities-as an individual and as a representative of the HUF. 3. Applicability of the limitation period under Section 34 of the Indian Income-tax Act: The court examined whether the assessment made on January 24, 1952, was barred by time under Section 34(3). It was established that the assessment would be barred if not made within four years from the end of the assessment year, unless it fell under the exceptions provided. The court found that the assessment was made in pursuance of an order under Section 31, which allowed reassessment without regard to the four-year limitation. Consequently, the assessment was held to be within time. 4. Constitutionality of the second proviso to Section 34(3): The court did not find it necessary to delve into the constitutionality of the second proviso to Section 34(3), as the case could be decided on other grounds. However, it was noted that the proviso allowed reassessment in pursuance of an order under Section 31, which was applicable in the present case. The court emphasized that the proviso was designed to ensure that directions or findings in appellate orders could be effectuated, even if it meant reassessing beyond the normal limitation period. Conclusion: The court answered the referred question in the affirmative, holding that the assessment for the year 1944-45 made on January 24, 1952, in the status of an individual was in order. The reference was returned to the Appellate Tribunal with a copy of the judgment, and costs were awarded to the Commissioner of Income-tax, assessed at Rs. 200.
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