TMI Blog1965 (2) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... n 23(2) of the Indian Income-tax Act, 1922. The petitioner has also prayed for a writ in the nature of prohibition prohibiting the respondents from taking any steps in pursuance of the aforesaid notices or making any orders for assessment in pursuance thereof. On 3rd of September, 1951, the petitioner's mother filed a voluntary return for the assessment year 1948-49 with the respondents. In the said return she is alleged to have indicated that she was a partner in a firm with annas 0-7-0 share. A notice under section 23(2) of the Income-tax Act, 1922, was issued on the 20th December, 1951, on the basis of the aforesaid return and it is alleged that the said notice, which required the production of certain account books, was complied with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al heir of his mother (since deceased) to appear before him on the 6th May, 1964. The petitioner wrote back to the Income-tax Officer pointing out that no proceedings could be taken in pursuance of the original return dated the 3rd September, 1951, as the statutory limit of 4 years prescribed under section 34(3) of the said Act had expired. The respondent-Income-tax Officer, however, issued another notice on the 2nd October, 1964, and then a third notice dated the 24th December, 1964, under section 23(2) of the Act. By the last mentioned notice the petitioner was called upon to appear before the Income-tax Officer on 14th January, 1965. The petitioner then filed a writ petition which was admitted on the 13th January, 1965. Mr. S. K. Aiyar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned counsel for the respondents and in my view the Income-tax Officer is competent to make an order of assessment without any bar of limitation if he finds, at the time of making the assessment, that the assessee had concealed the particulars of his income or deliberately furnished inaccurate particulars of such income. The position would, therefore, be that the Income-tax Officer is entitled to proceed with making enquiries and issuing notice under section 23(2) and he is to consider the question of limitation at the time of making the assessment order. If, at the time of making the order, he finds that the assessee had concealed the particulars of his income or deliberately furnished inaccurate particulars of such income, then he wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision. Another argument mentioned at the bar was that in view of section 297(2)(g) of the Income-tax Act, 1961, proceedings under section 28 cannot be taken with respect to the assessment year in question. Section 297(2)(g) provides that in a case where the assessment in respect of the year ending on the 31st day of March, 1962, or any earlier year is completed on or after the 1st day of April, 1962, the penalty proceedings have to be initiated and penalty imposed under the 1961 Act. In the submission of the learned counsel, section 28(1)(c) is not applicable to this case, because the assessment order has not yet been made and consequently the four years' limitation will apply. I do not agree. To enable the Income-tax Officer to make as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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