TMI Blog1957 (4) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... lant was assessed to income-tax for the above years under the said Act by three separate orders of the Income- tax Officer, dated respectively December 29, 1947, January 9, 1948, and March 29, 1949, and the tax was duly realised by the State authorities. The State merged with Madhya Pradesh with effect from August 1, 1949, by the States Merger (Governors' Provinces) Order, 1949; and by the Taxation Laws (Extension to Merged States and Amendment) Act, 1949 (hereinafter referred to in the judgment as the Taxation Laws Act), the Indian Income-tax Act was extended to the State of Nandgaon with effect from April 1, 1949. In the years 1954 and 1955, the Income-tax Officer issued three separate notices to the appellant under section 34 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of sections 23 and 29 was to be made, and that the service of notice of demand could, therefore, be made at any time. This decision was explained by their Lordships in Commissioner of Income- tax v. Khemchand Ramdas [1938] 6 I.T.R. 414, in which it was observed that when once a final assessment is arrived at, it cannot be reopened except in the circumstances detailed in sections 34 and 35 of the Act. In this connection, their Lordships of the Mysore High Court observed in City Tobacco Mart v. Income-tax Officer [1955] 27 I.T.R. 549: The view taken by the Privy Council was that an assessment became complete when the Income-tax Officer determined the amount due by the assessee and issued a notice of demand under section 29. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also referred to Bhailal Amin and Sons v. R.P. Dalal [1953] 24 I.T.R. 229 in support of their view, but that case appears to have involved another question and not the one under consideration. It is contended on behalf of the appellant that the words assessment and re-assessment have been used in different senses in the Income-tax Act itself and, therefore, the use of the word assessment alone in section 7 of the Taxation Laws Act should be interpreted to exclude the process of re-assessment. In the normal sense to assess means to fix the amount of tax due or to determine such amount . The process of re-assessment is to the same purpose and would thus be included in the connotation of the term assessment. It has been obs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e other part repealed. According to the interpretation sought to be put by the appellant, a curious result would follow inasmuch as section 34 would be partly saved and partly repealed. It would be available for enabling assessment to be made in cases in which no assessment had been made at all; but it would not be available for enabling assessment to be made in cases where there had been an assessment at too low a rate or with unjustified exemptions. This could not obviously be the intention. In the Mysore case [1955] 27 I.T.R. 549 cited above, reliance was placed on the report of the Indian States Finance Inquiry Committee which had recommended saving only to secure legal continuity of pending proceedings and to ensure finality and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same time, it should be held that there was no repeal at all. It has been observed in Sutherland's Statutory Construction in paragraph 2035 as follows: When, however, an existing statute is re-enacted by a later statute in substantially the same terms, a repeal by implication is effectuated only of those provisions which are omitted from re-enactment, while the unchanged provisions which are reiterated in the new enactment are construed as having been continuously in force. In this case, the Income-tax Act, as applied to the Nandgaon State, was repealed but was replaced by the Indian Income-tax Act. Section 34 in both these Acts are identical. According to the principle quoted above, section 34 should be deemed to be continuo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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