1959 (5) TMI 18 - SUPREME COURT

Whether the notice issued under section 34 of the Act by the Income-tax Officer on February 27, 1950, after the assessee had filed a voluntary return was valid in law ?

Whether the assessment made on February 26, 1951, is valid in law ?

Held that:- If the Income-tax Officer had acted on that return and assessed the assessee before March 31, 1950, the assessment would have been valid. He chose to ignore the return, and served on the assessee a notice under section 34(1). This notice was improper, because with the return already filed, there was neither an omission nor a failure on the part of the assessee, nor was there any question of assessment "escaping". The notice under section 34(1) was, therefore, invalid and the consequent assessment, equally so. We accordingly agree with the judgment under appeal. Appeal dimssied