1967 (6) TMI 15

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..... is the year ended on March 31, 1943. It may be stated that the assessee-firm undertook a contract for the construction of an aerodrome at Madhurpudi, near Rajahmundry, during the second world war, the work having been started in October, 1942, and completed in December, 1943. The accounts of the firm were closed for the whole period from October 1, 1942, to December 31, 1943. The Income-tax Officer issued a notice under section 22(2) on February 19, 1944, calling for a return of income for the assessment year 1943-44. In reply, the assessee stated that the work was started in October, 1942, and completed in December, 1943, and the accounts were under completion. The Income-tax Officer closed the assessment proceedings as " no assessment " .....

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..... the earlier year, viz., 1943-44. Consequent upon the order of the Appellate Assistant Commissioner, the Income-tax Officer issued a notice under section 34(1)(a) on February 20, 1959, for the assessment year 1943-44. The assessee objected on the ground that action under section 34(1)(a) was barred by limitation. The Income-tax Officer overruled the objection and completed the assessment on a total income of Rs. 37,209. The assessee's appeal to the Appellate Assistant Commissioner was unsuccessful. There was a further appeal to the Tribunal where it was contended that notice under section 34(1)(a) was barred by limitation, as it was issued long after the period of eight years, which ended on March 31, 1952. On this point, the Tribunal agr .....

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..... d, Sitapur v. Murlidhar Bhagwan Das, their Lordships of the Supreme Court have held that the direction which the Appellate Assistant Commissioner or the Tribunal gives in order to lift the ban of limitation imposed by section 34 must pertain to the year of assessment in appeal with respect to which alone the appellate authorities have jurisdiction. In this case it is obvious that the assessment year was 1944-45 and the Appellate Assistant Commissioner had decided to direct the apportionment of the income of the business for nine months at 27/43 of the total income for that assessment year. After stating thus, he observed that the balance of the income will be assessable for the earlier year, viz., 1943-44, with respect to which, it is obvio .....

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