1929 (10) TMI 5

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... aising the rate of tax on the ground that the rate originally fixed was too low is not the Income Tax Officer bound to re-assess the income that is, to determine afresh the correct taxable income of the assessee? 2. Section 34 refers to income escaping assessment and it provides that in such cases it may either be that the income has escaped assessment or has been assessed at too low a rate the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e Income Tax Officer is bound to begin proceedings again as regards assessment and in fact proceed as if there is an inquiry in respect not only of the portion which has escaped assessment but of all the other items, also, and reference is made to Sections 14 and 16. It is argued that, when there are various heads under which a person returns his income, if in respect of one of those heads, owing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... a way that, if rectified, it would take the income beyond a certain rate; for example, it may give the figure to be over ₹ 40,000 in which case it will be assessed at 1 anna 6 pies instead of 1 anna and the rate will, therefore, be higher. Where the rate is in question, the enquiry need not, under s 34, go beyond the facts on which the (raising of the rate depends. When the assessee is give .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X