TMI Blog1967 (3) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... xclude 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. - - - - - Dated:- 27-3-1967 - V. RAMASWAMY., J. C. SHAH. and S. M. SIKRI. JUDGMENT The judgment of the court was delivered by SHAH J.-- The High Court of Judicature at Madras recorded an answer in the affirmative on the following question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 23, 1958, under section 34(1)(a) of the Income-tax Act for assessment of the income of the assessee for the year 1946-47, consequent upon the finding recorded by the Appellate Assistant Commissioner in proceedings for assessment of the assessee's income relating to the year 1947-48. The assessee pleaded that as eight years had elapsed since the end of the assessment year and the amount involved was less than Rs. 1 lakh, no proceeding for assessment of income could be initiated under section 34(1)(a) of the Income-tax Act for the assessment year 1946-47. This plea was rejected by the departmental authorities and the Tribunal. They held that the proceeding for assessment initiated pursuant to the finding of the Appellate Assistant Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal ; that the assessment or reassessment made in consequence of or to give effect to any finding or direction contained in an order under section 31, section 33, section 33A, section 33B, section 66 or section 66A must necessarily relate to the assessment of the year under appeal, revision or reference as the case may be ; that the second proviso to section 34(3) only lifts the bar of limitation and does not enlarge the jurisdiction of the Income-tax Officer under the relevant sections ; and that the expressions "finding" and "direction" in the second proviso to section 34(3) mean respectively, a finding necessary for giving relief in respect of the assessment for the year in question, and a direction which the appellate or revisional au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finding. This argument has, in our judgment, no force. In interpreting the second proviso to section 34(3) Subba Rao J., in delivering the judgment of the majority, observed in Murlidhar Bhagwan Das's case : " A 'finding'.......can be only that which is necessary for the disposal of an appeal in respect of an assessment of a particular year. The Appellate Assistant Commissioner may hold, on the evidence, that the income shown by the assessee is 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 that income does not belong to the relevant year. He may incidentally find that the income belongs to another year, but that is not a finding ne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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