TMI Blog1945 (2) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... o the widow ₹ 12,156 in the year of account. The Income-tax Officer assessed the executors on the footing that the estate belonged to the joint Hindu family, but on appeal the Appellate Assistant Commissioner said that the status was that of an association of individuals, and directed the Income-tax Officer to make the assessment on this basis. The Income-tax Officer did so and again allowed the deduction of the ₹ 12,156. In the following year, another Income-tax Officer decided that his predecessor was wrong in allowing the deduction of ₹ 12,156 and decided to reopen the assessment under Section 34 of the Indian Income-tax Act. Consequently he issued a notice to the assessee and in due course levied the tax on this amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n says, If in consequence of definite information which has come into his possession the Income-tax Officer discovers that income, profits or gains chargeable to income-tax have escaped assessment in any year, or have been under-assessed, or have been assessed at too low a rate, or have been the subject of excessive relief under this Act, the Income-tax Officer may, in any case in which he has reason to believe that the assessee has concealed the particulars of his income or deliberately furnished inaccurate particulars thereof, at any time within eight years, and in any other case at any time within four years of the end of that year, serve on the person liable to pay tax on such income, profits or gains, or, in the case of a company, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or that a statute had been passed which had not been brought to the attention of the Income-tax Officer. But there must be some information which leads the Income-tax Officer to discover that income has escaped assessment, or been under-assessed. A similar opinion has been expressed by the Patna High Court in Fazal Dhala v. Commissioner of Income-tax, Bihar and Orissa [1944] 12 ITR 341 . It is very desirable to avoid conflict on such a question and we will follow the judgment of the Bombay High Court. In view of the opening words of the amended section in consequence of definite information which has come into his possession it is obvious that the word discovers which follows means something more than has reason to believe or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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