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1967 (3) TMI 16 - SC - Income TaxWhether the reassessment under section 34 of the Act is valid in law ? Held that:- The High Court was in error in holding that a finding or direction by an appellate authority in an order relating to assessment of one year may warrant the avoidance of the bar of limitation under section 34(1) of the Act against initiation of proceedings for assessment for another assessment year against the same assessee or against another assessee. The Appellate Assistant Commissioner may hold, on the evidence, that the income shown by the assessee was not the income for the relevant year and thereby exclude that income from the assessment of the year under appeal. The finding in that context is that the income did not belong to the relevant year. He may incidentally find that the income belonged to another year, but that is not a finding necessary for, the disposal of an appeal in respect of the year of assessment in question. Thus a finding within the second proviso to section 34(3) must be necessary for giving relief in respect of the assessment of the year in question. Appeal allowed.
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