1955 (11) TMI 43 - HC - Income Tax

Summary

Issues:
1. Validity of notice under section 22(2) of the Income-tax Act.
2. Proper publication of transfer of jurisdiction and its effect on notice under section 22(4).
3. Competency of the officer issuing the notice under section 22(4).
4. Necessity of another notice under section 22(2) upon transfer of the case.

Detailed Analysis:

Issue 1: The validity of the notice under section 22(2) of the Income-tax Act was challenged by the applicant, contending that the transfer of the case was not properly notified and published in the official Gazette, thus making the notice invalid. However, the court held that the transfer was valid under sub-section (7A) of section 5 by the Commissioner of Income-tax, and publication in the Gazette was not required. The notice served by the Income-tax Officer, Chhindwara, was deemed valid for the assessment by the Income-tax Officer, Special Circle, Nagpur.

Issue 2: The question of proper publication of the transfer of jurisdiction and its effect on the notice under section 22(4) was raised. The court ruled that the transfer under sub-section (7A) did not necessitate re-issuance of notices by the succeeding officer. Therefore, the notice under section 22(4) issued by the officer in Nagpur was deemed valid and in compliance with the law.

Issue 3: The competency of the officer, Shri R.S. Gahlot, who signed the notice under section 22(4) was challenged. The court found that the officer had the authority to sign the notice, and the subsequent assessment made by another officer was considered valid based on the notice issued.

Issue 4: The necessity of another notice under section 22(2) upon transfer of the case was debated. The court held that since the assessee failed to comply with the initial notice under section 22(2) by not filing the return, the assessment made under section 23(4) was deemed valid, and the issuance of another notice was not required.

In conclusion, the court dismissed the application, upholding the validity of the notices issued and the assessment made under section 23(4) of the Income-tax Act. The court emphasized the importance of complying with notice requirements for assessments and affirmed the decision of the lower authorities in dismissing the appeals.