9911796707
TMI Blog1968 (4) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... petition under article 226 of the Constitution was dismissed. After hearing learned counsel for the appellants in support of this appeal, we find it devoid of merit. The petitioners having filed their income-tax return regarding the assessment year 1946-47, the Income-tax Officer passed the order of assessment on the 21st of February, 1951. By that order the petitioners were assessed, under section 23 of the Indian Income-tax Act, 1922 (hereinafter referred to as " the Act "), on an income of Rs. 1,17,932. An appeal filed by the petitioners was allowed, in part, by the order of the Appellate Assistant Commissioner dated the 21st of May, 1953. Thereafter the petitioners moved the Commissioner under section 33A of the Act. By an order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tiated in January, 1955, and are consequently mere duplication of the original proceedings. Proceedings under section 34 are, therefore, dropped. " Following the order of remand dated 19th October, 1954, the Income-tax Officer completed the assessment regarding the assessment year 1946-47 on 14th January, 1958. The order of assessment did not take into consideration the two fixed deposits of rupees one lakh each in the Hindustan Commercial Bank, Dholpur, referred to earlier in this judgment. After the Central Board of Revenue had sanctioned the proceedings under section 34(1)(a) of the Act in respect of the two bank deposits mentioned above, the Income-tax Officer issued on 3rd November, 1961, a fresh notice under section 34(1)(a) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctober, 1955, dropping the earlier proceedings had not been passed after considering the matter on the merits, the Income-tax Officer was not precluded from initiating proceedings again. The said order of 3rd October, 1955, quoted earlier in this judgment, itself makes it clear that the proceedings were dropped to avoid duplication of proceedings about the original assessment, under section 23 of the Act, which were then pending before the Income-tax Officer in consequence of the order of remand passed by the Commissioner on 19th October, 1954. A perusal of the provisions contained in section 34 of the Act makes it clear that action under section 34(1)(a) of the Act is taken when the Income-tax Officer has reason to believe that : " . . . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision in the Act laying down, expressly or impliedly, that if the assessment order under section 23 of the Act is passed at a time when the Income-tax Officer has knowledge of income which has not been disclosed by the assessee in his return, the Income-tax Officer would be precluded thereafter from issuing notice in respect of such income under section 34(1) of the Act. Learned counsel placed reliance on an observation in the decision of the Supreme Court in the case of Calcutta Discount Co. Ltd. v. Income-tax Officer, Companies District I, Calcutta. The observation relied upon is to be found in paragraph 8 at page 376 of the above report ; it runs as follows : " From the primary facts in his possession, whether on disclosure by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the two fixed deposits in the Hindustan Commercial Bank Ltd., Dholpur, because admittedly these deposits had not been taken into consideration in arriving at the conclusions recorded in that assessment order. As regards the third contention, there is no dispute that the combined effect of the amendment by section 18 of the Finance Act, 1956, passed on April 27, 1956, and the Income-tax (Amendment) Act, 1959, passed on March 12, 1959, as interpreted by the Supreme Court in the case of S. C. Prashar v. Vasantsen Dwarkadas is that, even though the period of eight years may have already expired, the Income-tax Officer would have the power to take action under section 34(1)(a) of the Act, provided the aggregate amount under-assessed was more t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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