TMI Blog1967 (5) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... is a firm consisting of three partners. On October 13, 1961, the firm furnished a statement under sub-section (3) of section 22 of the Act with respect to income for the assessment years 1959-60 and 1960-61. The same day the Income-tax Officer issued a notice to the firm under sub-section (4) of section 22 of the Act for filing certain documents. The Income-tax Officer was informed that the firm was not in a position to file all the documents mentioned in the notice under section 22(4). The Income-tax Officer took up the position that the firm had failed to comply with the notice served upon it under section 22(4). On November 30, 1961, an assessment order was passed under section 23 (4) of the Act on the footing that the firm had failed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omission or wrong statement therein, he may furnish a return or a revised return, as the case may be, at any time before the assessment is made." Sub-section (4) states : " The Income-tax Officer may serve on any person who has made a return under sub-section (1) or upon whom a notice has been served under sub-section (2) a notice requiring him, on a date to be therein specified, to produce. . . . such accounts or documents as the Income-tax Officer may require. . . . " Section 23 of the Act provides for assessment. Sub-section (4) of that section states : " If any person fails to make the return required by any notice given under sub-section (2) of section 22. . . . or fails to comply with all the terms of a notice issued under sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Income-tax Officer rejected the return, and estimated the income at Rs. 30,000 and assessed him accordingly. It was held by the Madras High Court that the return submitted by the assessee, even though it did not disclose the receipt of taxable income, was a " return " within section 22(1) on which assessment proceedings could be validly taken and therefore the assessment was valid. The question referred to the High Court in that case was whether the assessment of Rs. 30,000 for the assessment year 1947-48 was valid. It was in that connection that the court remarked that there was a return within section 22(1) of the Act. The court was not called upon to decide whether action could be taken under section 22(4) of the Act. In R. P. Kand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sub-section (3). One of the situations mentioned in sub-section (3) is where a return has been filed under sub-section (1) and it is found that that return is incomplete. In such a case the person may furnish a supplementary return. It is difficult to accept the contention that a supplementary return is also under sub-section (1). The supplementary return is clearly under sub-section (3) of section 22. The plan of section 22 suggests that returns may be filed under three separate provisions contained under section 22 of the Act. There should be no difficulty in treating returns filed under sub-section (3) as a distinct class. We notice that, although sub-sections (1) and (2) are mentioned in sub-section (4) of section 22, there is no me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntention of the legislature which is to make a charge levied effective......In interpreting provisions of this kind the rule is that construction should be preferred which makes the machinery workable... " Mr. Gulati urged that, if the interpretation placed on section 22(4) by the learned single judge is accepted, the provision would be unworkable. We may point out that section 22(4) is not the only provision in the Act enabling the Income-tax Officer to examine the relevant documents. Sub-section (3) of section 23 provides for an enquiry. During such an enquiry the Income-tax Officer may insist on examing such evidence as he way require on specific points. Section 37 of the Act confers wide powers upon the income-tax authorities. Under s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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