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TMI Blog1967 (7) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... the consideration that the assessee followed the mercantile system of accounting, assessed Rs. 1,60,000 of the total amount of interest as income for the assessment year 1947-48 and the balance, Rs. 17,232, as income for the assessment year 1948-49. Upon appeal by the assessee against the assessment for the assessment year 1947-48, the Appellate Assistant Commissioner held that the sum of Rs. 1,60,000 was not taxable as income for that assessment year as it could not be said to have accrued during the previous year ending October 17, 1946. He excluded that sum from the assessment. On June 12, 1963, the Income-tax Officer issued a notice under section 34 of the Indian Income-tax Act, 1922, in respect of the assessment year 1948-49 for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d proviso to section 34(3) reads : Provided further that nothing contained in this section limiting the time within which any action may be taken or any order, assessment or reassessment may be made, shall apply to a reassessment made under section 27 or to an assessment or reassessment made on the assessee or any person in consequence of or to give effect to any finding or direction contained in an order under section 31, section 33, section 33A, section 33B, section 66 or section 66A." The question is whether the aforesaid proviso enables the Income-tax Officer to ignore the bar of limitation when making an assessment of escaped income for any assessment year or does it enable him to do so only in respect of that assessment year which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pression ' direction ' can be given full meaning, namely, that the finding is a finding necessary for giving relief in respect of the assessment of the year in question and the direction is a direction which the appellate or revisional authority, as the case may be, is empowered to give under the sections mentioned therein. The words ' in consequence of or to give effect to' do not create any difficulty, for they have to be collated with, and cannot enlarge the scope of the finding or direction under the proviso. If the scope is limited as aforesaid, the said words also must be related to the scope of the findings and directions .... In the result, we hold that the said proviso would not save the time limit prescribed under sub-section (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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