9911796707
TMI Blog1955 (11) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... ent for the year 1950-51 (accounting period ending with 31st March, 1950). 3. On 8th June, 1950, the Income-tax Officer, Chhindwara, issued a notice under sub-section (2) of section 22 of the Act requiring the assessee to submit a return of her total income within thirty-five days of the receipt of the notice. On 2nd August, 1950, she filed an application for extension of the time limit by two months for filing the return on the ground that a number of adjustments in respect of dealings with merchants and suppliers were still to be made. Time to file the return was extended up to 28th August, 1950. 4. In the meantime, under the orders of the Commissioner of Income-tax, Madhya Pradesh and Bhopal, of date 17th August, 1950, the case was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Officer further issued a notice under sub-section (3) of section 28 of the Act. 8. We are not concerned with the case started on the notice under sub-section (3) of section 28. We are informed that matter is still pending. We are concerned here only with the assessment made under sub-section (4) of section 23 of the Act. 9. The assessee appealed before the Appellate Assistant Commissioner against the order of assessment. The Appellate Assistant Commissioner, in order to satisfy himself, again in July, 1951, gave an opportunity to the assessee to produce the books of account within four days. She, however, failed to do so. The reason given by her counsel for her failure to do so was that the assessee's son had gone to Bombay. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income- tax Officer, Special Circle, Nagpur, on 27th October, 1950, and could he issue the said notice so as to bind the assesse? (iv) Was it not necessary to have another notice under section 22(2) coupled with the prescribed form of return issued by the Income- tax Officer, Special Circle, Nagpur, on the case being transferred to his file and if it was not necessary, is the notice under section 22(4) dated 27th October, 1950, a valid notice? 12. It is urged on behalf of the applicant that: (a) The notice issued under sub-section (2) of section 22 of the Act by the Income-tax Officer, Chhindwara, could not be availed of by Shri Uggarsain Jain, Income-tax Officer, Special Circle, Nagpur, inasmuch as the order of the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax Officer to another. Shri R.S. Gahlot, who signed the notice under sub- section (4) of section 22 of the Act, had authority to sign it. In the alternative, it is urged that even if the notices are invalid, the assessment under sub-section (4) of section 23 is not vitiated. Reliance is placed on a decision of the Federal Court in Chatturam and Others v. Commissioner of Income-tax Bihar [1947] 14 I.T.R. 302. 15. In our opinion, the alternate contention of the learned counsel for the Department has no force. A valid notice calling upon the assessee to file a return under sub-section (2) of section 22 of the Act is condition precedent to sustain an assessment made under sub-section (4) of section 23 of the Act on account of failure to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to assess the applicant under sub-section (4) of section 23 of the Act. It is urged that under section 64 of the Act the Income-tax Officer, Chhindwara, was the person who was competent to make the assessment. For a valid transfer of the case from his file to that of the Income-tax Officer, Special Circle, Nagpur, publication of the order in the Official Gazette under sub-section (6) of section 5 of the Act is necessary. In our opinion, this contention has no force. True the assessee carries on business in Chhindwara district and normally the Income-tax Officer Chhindwara, would be the competent authority to make the assessment under sub-section (1) of section 64 of the Act, but the provisions of sub- section (1) and (2) of that section a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on (2) of section 22 of the Act. It was, therefore, not necessary for the Income-tax Officer, Special Circle, Nagpur, to issue another notice under sub-section (2) of section 22 of the Act. 20. It is an admitted position that the assessee failed to make the return required by the notice under sub-section (2) of section 22 and has not made a return or a revised return under sub-section (3) of that section. This in itself is sufficient to sustain the assessment made by the Income-tax Officer under sub-section (4) of section 23 of the Act. It is therefore, not necessary to consider the contention raised as to the validity of the notice issued under sub-section (4) of section 22. 21. It is urged on behalf of the assessee that the question ..... X X X X Extracts X X X X X X X X Extracts X X X X
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