9911796707
TMI Blog1972 (10) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... vious year is from May 9, 1954, to May 31, 1955. The assessee is a Hindu undivided family, namely, Messrs. Hargovindsing Narainsing. For the assessment year 1956-57 on May 3, 1956, the Income-tax Officer issued a notice under section 22(2) of the Act, in the name of " Shri Hargovindsing Narainsing, C/o. Court Receiver, High Court, Bombay ". This notice was served upon the court receiver on May 7, 1956. In response to this notice the court receiver filed three separate returns for the accounting year under his signature. These returns are for the following periods of the accounting year: (1) From May 9, 1954, to September 27, 1954, i.e., upto the date of death of Hargovindsing Narainsing, the karta of the Hindu undivided family; (2) from Sep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner and he took the view that as the Income-tax Officer did not take any action on the return filed by the court receiver, he was entitled to issue notice under section 34 of the Act and based his assessment on the return submitted by the Hindu undivided family. In appeal by the assessee before the Income-tax Tribunal, it was also contended that the initiation of the proceedings under section 34 of the Act was invalid in law, because a notice under section 22(2) of the Act was issued and served upon the court receiver; that pursuant to the said notice the court receiver had submitted three returns pertaining to the accounting period; that so long as no proper order was passed upon these returns, it was not permissible to the Income-tax Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr. Hajarnavis stated that the Income-tax Officer was entitled to initiate proceedings under section 34 of the Act because there was no valid notice served upon the Hindu undivided family under section 22(2) of the Act as it was served upon the court receiver. Secondly, he submitted that in any event the three returns filed by the court receiver pursuant to this notice were invalid in law and that permitted the Income-tax Officer to initiate proceedings under section 34 of the Act. Notice under section 22 of the Act was issued by the Income-fax Officer on May 3, 1956, in the name of Shri Hargovindsing Narainsing, C/o Court Receiver, High Court, Bombay, and it was served on the court receiver on May 17, 1956. It is not disputed in the prese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not authorise an Income-tax Officer to initiate proceedings under section 34 of the Act. In Commissioner of Income-tax v. A. J. Zaveri, it was held by the Income-tax Officer that there was no legal and valid return filed by the assessee for the first year of assessment, viz., 1951-52, because the return purported to be filed by the assessee for the said year was invalid inasmuch as it was not signed by the assessee. While dealing with these contentions, this court pointed out that in view of the circumstances pointed out by the Tribunal there could be no doubt whatsoever that the assessee could not be said to have omitted or failed to make a return of his income. It may be that the return filed by him may not have been in strict compliance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50 to 1951-52, but also made assessments on the basis of those returns under section 23(3). On this fact, the Punjab High Court took the view that as the Income-tax Officer had not only entertained the return, but acted on it by issuing a notice under section 23(2) and had not at that stage raised an objection on the ground that the return was invalid, and he could have by resort to section 23(3) removed any lacuna in the return, the return filed by the assessee on September 3, 1951, was a valid return. That return still remained undisposed of and, therefore, the assessment proceedings initiated by a notice under section 34(1)(a) were without jurisdiction. In the case before us, pursuant to the notice under section 22(2) of the Act, not on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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