TMI Blog1968 (8) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... notice under that section was barred by time, having been made beyond the period prescribed. The principle which has been settled by this decision is that where a voluntary return has been filed pursuant to a general notice even after the expiry of the period mentioned in that notice, the Income-tax Officer must proceed to assess the income by taking up that return. He cannot ignore that return and serve on the assessee a notice under the provisions relating to escaped income which was section 34 in the Income-tax Act. Appeal allowed. - - - - - Dated:- 14-8-1968 - A. N. GROVER. and V. RAMASWAMY. JUDGMENT The judgment of the court was delivered by GROVER J.-- These are two connected appeals by certificate from a common j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rved under section 19(2) and therefore there was no jurisdiction in the Agricultural Income-tax Officer to pass on order of assessment under section 20(1) of the Act and further that, since no assessment order had been passed and no notice of demand had been made within the period of three years of the end of the relevant financial year the assessments were barred by time under section 30 of the Act. In the return which was filed in the High Court to the writ petition, it was asserted by the Assistant Commissioner of Taxes that the respondents had been served with a notice under section 16(2) and the details of the notices and the reminders which were issued together with copies thereof were filed as annexures. It was maintained that even o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee did not alter the situation as there was no provision in the Act which would help the department in that behalf. It was open to the department to have assessed the assessee before the expiry of the period of three years on receipt of the return but that was not done. Section 19 is almost in the same terms as section 22 of the Income-tax Act, 1922, hereinafter called the Income-tax Act. Section 19(1) reads as follows : " The Agricultural Income-tax Officer shall, on or before the first day of May for the year commencing 1st April, 1939 or any later day notified by Government in each year, give notice by publication in the press and otherwise in the manner prescribed by rules, requiring every person whose agricultural income exce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easoning of the High Court was based on an erroneous assumption that no such notice had been served. According to him the return filed in the High Court it had been clearly asserted that such notices had been issued followed by reminders. No counter-affidavit, however, had been filed by the respondents in the High Court contradicting the statement in the return. Counsel further points out that the statement in the judgment of the High Court "but it is not disputed that the notices under section 19(2) of the Act had not, in fact, been served on the petitioner", is based on some misunderstanding or misapprehension. The counsel for the appellant did not make any concession on the point before the High Court and at the earliest opportunity, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 34(1) of that Act pursuant to which the assessee submitted a return in March, 1950. The Income-tax Officer made the assessment in February, 1951, including the sum of Rs. 59,026 in the total income of the assessee. The assessee contended that that the assessment was invalid as it was completed more than four years after the end of the assessment year in violation of section 34(1)(b). The department contended that the voluntary return was no return as it did not disclose any taxable income and the assessment was valid under the proviso to section 34(3). It was held that the voluntary return filed by the assessee, even though it did not disclose any taxable income, was a good return. As such, no question arose under section 34(1) of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fined to the year of assessment, namely, that the return should be made at any time within the year of assessment and not later in which case sub-section (3) would not apply and the provision of section 30 would be at once attracted, This contention has only to be stated to be rejected. In the first place, if sub-section (3) has to be read in the manner suggested, it would become ambiguous and almost unintelligible. Secondly, according to the ordinary canons of interpretation, the words employed must be given their proper and plain meaning. Moreover, section 19 is in pari materia with section 22 of the Income-tax Act and the law which has been laid down by this court, while interpreting the provisions of that section, must govern the constr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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