TMI Blog1957 (3) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... r 1951-52, on 22nd January, 1952, his income from that share was provisionally taken at ₹ 8, 831-0-0 and the assessment order contained this remark. Action under section 35 will be taken when correct share income is known. 2. On that basis, he was assessed to tax for that year and it is not disputed that the tax so determined was duly paid. The assessment of the aforesaid firm itself for that year was completed on 31st March, 1955, and from that assessment it was clear that the petitioner's income for that year from his share was nearly ₹ 24, 000. Thereupon, with the previous consent of the Commissioner of Income-tax, Hyderabad, the Income-tax Officer served a notice upon the petitioner on 28th March, 1956, under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made in the income of the firm under section 31, section 33, section 33-A, section 33-B, section 66 or section 66-A that the share of the partner in the profit or loss of the firm has not been included in the assessment of the partner or, if included, is not correct, the inclusion of the share in the assessment or the correction thereof, as the case may be, shall be deemed to be a rectification of a mistake apparent from the record within the meaning of this section, and the provisions of sub-section (1) shall apply thereto accordingly, the period of four years referred to in that sub-section being computed from the date of the final order passed in the case of the firm. 4. A divisional Bench of the Andhra High Court ruled on 9th Decem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. The present section 34 was substituted for the original section by section 8 of the Amendment Act and so far as it is relevant for our purposes, it runs as follows 34. (1) If- (a) (b) the Income-tax Officer has in consequence of information in his possession reason to believe that income, profits and gains chargeable to income-tax have escaped assessment for any year..............., he may...............at any time within four years of the end of that year, serve on the assessee......... a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 22 and may proceed to assess or reassess such income, profits or gains......... ; and the provisions of this Act shall, so far as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the firm furnished to the Income-tax Officer information that a part of the petitioner's income had escaped assessment and the Officer had not merely reason to believe that it was so but indeed he had proof positive to that effect. It seems to me that both the conditions laid down in section 34(1)(b) are satisfied, there being no question of any discovery such as was necessary before 1948. The language of the section, as it now stands, is quite apt and applicable to the facts before meIt is, however, alternatively contended that as section 35(5) expressly provides for a case like the present one, that special provision excludes the applicability of a general provision like section 34. Whatever force there may be in the argument, I do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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