1971 (9) TMI 9 - SC - Income Tax

Income-tax Officer had no jurisdiction to revise the assessment - jurisdiction of ITO s to reopen an assessment u/s 34 depends upon issuing of a valid notice - Appeal is dismissed as not maintainable

Summary

Issues:
1. Validity of notice issued under section 34 of the Indian Income-tax Act, 1922.
2. Jurisdiction of the Income-tax Officer to reopen an assessment.
3. Discrepancy in the assessment years mentioned in the notices under sections 22(2) and 34.

Analysis:
The Supreme Court addressed the validity of a notice issued under section 34 of the Indian Income-tax Act, 1922, in Civil Appeal No. 1172 of 1971. The case involved a discrepancy where the Income-tax Officer intended to reopen the assessment for the year 1948-49 but actually reopened the assessment for the year 1949-50. The Court emphasized that the jurisdiction of the Income-tax Officer to reopen an assessment under section 34 hinges on the issuance of a valid notice. Consequently, if the notice is found to be invalid, the entire proceedings would be void due to lack of jurisdiction. The Court concurred with the High Court's decision that the notice was indeed invalid, thereby rendering the Income-tax Officer incompetent to revise the assessment for the year 1949-50.

Moving on to Civil Appeal No. 1990 of 1968, the Supreme Court noted that the High Court had not provided any reasons for granting the certificate in this appeal. As a result, the Court deemed this appeal as not maintainable due to the lack of supporting rationale from the High Court. Given that the Court had already delved into the merits of the case in Civil Appeal No. 1172 of 1971, it decided not to remit the appeal back to the High Court for certificate reconsideration. Consequently, Civil Appeal No. 1990 of 1968 was dismissed as not maintainable without imposing any costs.