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Issues:
Challenge to notices under section 34 of the Income-tax Act for assessment years 1948-49 and 1949-50. Analysis: The petitioner filed a writ petition under article 226 of the Constitution seeking to quash two notices issued under section 34 of the Income-tax Act for the assessment years 1948-49 and 1949-50. The Income-tax Appellate Tribunal had disposed of an appeal related to the assessment for the year 1949-50, which included various items. The Tribunal found that two items of &8377; 15,000 each, credited in the petitioner's books on specific dates, should have been included in the assessment year 1948-49 instead of 1949-50. The Tribunal also determined that three other sums of money, deposited through one of the partners, were not connected to the assessee firm's affairs. The Tribunal emphasized that if these sums were assessable in 1949-50, they were not related to the petitioner. In a Division Bench case, it was established that for the income-tax department to rely on the second provision of section 34(3) to avoid limitation, the direction or finding must pertain to the assessee and the relevant year. In this case, the Tribunal's observations regarding the assessability of the two sums of money in a year other than 1949-50 could not be considered a valid finding. Similarly, the Tribunal clarified that the petitioner had no connection to the other three sums of money, indicating they should be assessed for a different individual. Consequently, the notices issued under section 34 were found to be beyond time, and the writ petition was allowed. The court quashed the two notices dated September 7, 1959, and awarded costs to the petitioner.
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