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1964 (1) TMI 4 - SC - Income TaxWhether the view of the High Court was that the provisions of the second proviso to section 34(3) would not apply to a case where the escaped assessment is of an amount less than a lakh of rupees and more than eight years have elapsed? Held that:- Apparently, the High Court has overlooked the fact that the second proviso to sub-section (3) of section 34 was amended first by Act 25 of 1953 and then by Act 18 of 1956. By the amendment of 1953, for the word " sub-section ", the words " section limiting the time within which any action may be taken or any order, assessment or reassessment may be made " were substituted. By the amendment of 1956 it now stands as already quoted by us. If the proviso in its present form applies here it would govern the whole of section 34(1) and would consequently include even an escaped assessment with respect to which limitation is provided in clause (ii) of the first proviso to section 34(1). The result, in our opinion, would be the same even if the case were to fall to be governed by the Amending Act of 1953, though not by that of the Amending Act of 1956. We may add that the amendment of 1953 took effect from April 1, 1953, and that of 1956 from April 1, 1956. For the reasons stated above, the decision of the High Court is clearly wrong.Appeal allowed. Case remanded.
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