TMI Blog1967 (7) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1964, in Tax Case No. 153 of 1962. The assessment year involved in this appeal is 1948-49, the corresponding previous year being the financial year 1947-48. For the accounting period from November 13, 1947, to November 1, 1948, which was the corresponding previous year for the assessment year 1949-50, there was shown a credit of Rs. 25,000 in the capital account of the appellant. On November 13, 1947, this amount was credited in the books of the appellant. On October 30, 1948, this amount was transferred to the account of one Amrithlal Ranchoodas, the father-in-law of the appellant. The Income-tax Officer included the said amount as income of the appellant from undisclosed sources in the assessment for the assessment year 1949-50. On a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice under section 34 issued on November 3, 1958, was bad in law and was not saved by the second proviso to section 34(3) of the Act. The Commissioner of Income-tax preferred an appeal against the order of the Appellate Assistant Commissioner to the Income-tax Appellate Tribunal which allowed the appeal, holding that "the order of the Appellate Assistant Commissioner in the appeal against the assessment for 1949-50 should be taken to contain a finding that the sum of Rs. 25,000 represented income of the assessee to be considered in the assessment year 1948-49". At the instance of the appellant the Appellate Tribunal referred the following questions of law for the opinion of the High Court under section 66(1) of the Act : "(1) Whether, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aken by this court in Income-tax Officer, A-Ward, Sitapur v. Murlidhar Bhagwan Das in which it was held that the expressions "finding" and "direction", in the second proviso to section 34(3), meant 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 authority, as the case may be, was empowered to give under the sections mentioned in that proviso. A finding therefore, could only be that which was necessary for the disposal of an appeal in respect of an assessment of a particular year. The Appellate Assistant Commissioner might hold, on the evidence, that the income shown by the assessee was not the income for the relevant year and thereby ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder clause (a) of sub-section (1) may be issued at any time notwithstanding that at the time of the issue of the notice the period of eight years specified in that sub-section before its amendment by clause (a) of section 18 of the Finance Act, 1956 (18 of 1956), had expired in respect of the year to which the notice relates." Section 4 of the Amending Act, 1959, read as follows : "No notice issued under clause (a) of sub-section (1) of section 34 of the principal Act at any time before the commencement of this Act and no assessment, reassessment or settlement made or other proceedings taken in consequence of such notice shall be called in question in any court, tribunal or other authority merely on the ground that at the time the no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... words, in respect of assessment years prior to March 31, 1956, and, therefore, notices issued under section 34(1)(a) of the Income-tax Act, before April 1, 1956, could not be challenged on the ground that they were issued beyond the time limit of eight years from the respective assessment years prescribed by the 1948 amendment. On behalf of the appellant Mr. Swaminathan raised the objection that the point was not taken up by the respondent in the High Court, nor was there any reference to it in the statement of the case filed by the respondent. It was also contended that the point said was outside the scope of the questions of law referred by the Appellate Tribunal to the High Court. We do not think there is any substance in one objection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the legal effect of the Amending Act of 1959 (Act 1 of 1959) is within the frame-work of the question already referred to the High Court and it is therefore competent to this court, in a case of this description, to allow a new contention to be advanced. It is, however, necessary that the case should be remanded to the High Court for examining the question of law referred to it after considering the impact of the Amending Act of 1959 (1 of 1959). For these reasons we allow this appeal, set aside the judgment of the High Court dated January 2, 1964, and remand the case to it for further hearing and answering the reference in the light of the Income-tax Amending Act 1 of 1959. In the circumstances of the case we direct that the res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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