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TMI Blog1969 (5) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... al under section 66(1) of the Indian Income-tax Act, 1922, to refer the following question of law which is said to arise out of the consolidated order of the Income-tax Appellate Tribunal in I.T.A. Nos. 10928 to 10930 of 1962-63. The question referred is : " Whether the declaration filed by the assessee under section 17(1) in respect of the assessment year 1958-59 was operative in relation to the reassessments in respect of the previous years ending on December 31, 1954, December 31, 1955, and December 31, 1956, corresponding to the assessment years 1955-56, 1956-57 and 1957-58 ?" The facts are stated in a consolidated statement drawn up for the purpose and they are as follows : The original assessments of the assessee, who derived inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in question should be taxed at rates appropriate to his world income and that the omission on his part to make the declaration earlier under section 17(1) was due to inadvertence and ignorance. It was also contended that as the assessments were re-opened and are thus deemed to be pending even for the earlier years, the assessee's declaration made during the assessment proceedings for the year 1958-59 should be considered and the assessment made in accordance with law. The Income-tax Officer was of the view that as the assessee exercised his option after the prescribed date, the declaration cannot have effect on the assessments before this, even though they were taken up under section 34(1)(b) of the Act. He was of the view, that the declara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal observed that there is nothing in the language of section 17(1) to support the revenue's stand that such declaration shall have effect only for subsequent assessment years. It interpreted the word "subsequent" as to mean subsequent assessments, whatever may be its nature. It would not agree with the revenue that the word "subsequent" is only apposite with reference to years and not to assessments as contended. As the department has chosen to reopen completed assessments, then, according to the Tribunal, those assessments once again have become pending and, therefore, it held that the declaration made before such assessments were completed can be taken advantage of by the assessee. The Appellate Assistant Commissioner having observed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng on him and is made applicable to all assessments thereafter. The second proviso confers another privilege on an assessee who, for sufficient cause, is prevented from making the declaration as prescribed in the first proviso. If the revenue is satisfied that the assessee was prevented by sufficient cause from making such a declaration on the occasion prescribed in the first proviso, then such a declaration may be accepted and shall have effect in relation to the assessment for the year in which the declaration is made (if such assessment had not been completed before such declaration), and all assessments thereafter. In the instant case, the declaration was filed during the assessment year 1958-59. It is common ground that for the previou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is the assessment. Liability does not depend on assessment. That, ex hypothesis, has already been fixed. But assessment particularizes the exact sum which a person liable has to pay. Lastly, come the methods of recovery, if the person taxed does not voluntarily pay." (Per Lord Dunedin in Whitney v. Inland Revenue Commissioners). Section 17 (1) fixes the liability of a non-resident. The proviso gives him the privilege provided he acts in a particular way and in the prescribed manner. If he fails to adopt the course which would enable him to obtain the statutory concession regarding rate, he is to be blamed and he cannot, by circumventing the particularized procedure, evoke the sympathy of the revenue and seek for relief. In the inst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the application of the plain language of section 17 (1) read with its provisos, we are of the view that the expression "all assessments thereafter" appearing in both the provisos could only apply to all assessment years thereafter and not to assessments made by the revenue in exercise of its powers under section 34 of the Act. The Tribunal was of the view that it would be a straining of the language if the expression "all assessments thereafter" were to be understood as assessment years thereafter. Apparently, it based its conclusion that, if the revenue chose to reopen the completed assessments, then those assessments should be deemed to be pending. It should not be forgotten that the jurisdiction under section 34 is very limited and i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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