TMI Blog1969 (10) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... of the aforesaid notice, further notice under section 23(2) of the Act came to be issued. Since the assessee did not comply with the requirements of the notice issued under section 23(2), the Income-tax Officer completed the assessment as per the provisions of section 23(4) read with section 34 of the Act. Thereafter, the assessee filed an application under section 27 of the Act before the Income-tax Officer. That application being dismissed, an appeal was preferred before the Appellate Assistant Commissioner of Income-tax concerned. By an order dated September 19, 1967, the Appellate Assistant Commissioner allowed the appeal and cancelled the assessment with a direction that the Income-tax Officer should make a fresh assessment in accordance with law. Pursuant to the aforesaid order, the Income-tax Officer issued a notice under sections 22(4) and 23(2) of the Act to the assessee. Aggrieved by this procedure, the present petitioner, an ex-partner of the dissolved firm, has approached this court with these petitions. The reliefs sought for by him are for the issue of a writ of certiorari quashing the notice issued under section 34(1)(a) of the Act and for a writ of prohibition pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erstand that the legislature itself had understood the words " fresh assessment " occurring in section 27 as equivalent to " reassessment " . Viewed from this angle also any " fresh assessment " to be made under section 27 of the Act can be validly commenced only by the issue of a notice under section 34(1) of that Act. On the first of the above questions Sri S. R. Rajasekharamurthy, the learned counsel appearing on behalf of the revenue, submits thus : Clauses (ii) and (iii) of the first proviso to section 34(1) of the Act, in so far as it is relevant for the purpose of the present contention, postulate that no notice under section 34(1)(a) of the Act shall issue without the prior sanction of the Central Board of Revenue in cases in which income escaping assessment amounts to or is likely to amount to one lakh of rupees or more and a period of 8 years have elapsed after the expiry of the relevant assessment year. Hence, it follows that if a notice under section 34(1) is issued within 8 years from the end of the assessment year, no sanction by the Central Board of Revenue would be necessary, notwithstanding the income escaping assessment amounted to one lakh of rupees or more. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is that the ratio of the case as enunciated in the decision of this court was not disturbed in any manner by the Supreme Court. Even if that be so, we are unable to see how this decision could be of any assistance to the petitioner. In the counter-affidavit filed on behalf of the revenue, the dates of expiry of the time limit of 8 years, the dates of issue of notices under section 34(1)(a) of the Act and the dates of service of such notices on the assessee have been clearly specified. These dates are not controverted by the petitioner in any manner. It is clear, therefore, that all the notices under section 34(1)(a) of the Act were issued and actually served on the assessee before the expiry of the period of limitation of 8 years referred to in the relevant provisos of that section. That being so, the question of securing the prior sanction of the Central Board of Revenue would not at all arise. The relevant provisos enjoin securing of prior sanction of the Central Board of Revenue only in cases where " escaped income " is one lakh of rupees or more and the time limit of 8 years has elapsed, after the expiry of the relevant assessment year. Unless both the requirements are present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he was prevented by sufficient cause from complying with them. Section 22 refers to the furnishing of the return of income by any taxpayer in response to the public notice or upon service of notice issued by the Income-tax Officer under section 22(2) of the Act. Section 22(4) relates to a notice to be issued by the Income-tax Officer requiring an assessee to produce accounts or documents or such other information as he may require for the purpose of assessment. Section 23(2) refers to a notice calling upon an assessee to attend the office or to produce or to cause to be there produced, any evidence on which such person may rely in support of the return. The other grounds referred to in section 27 relate to sufficient cause and want of reasonable opportunity to comply with the requirements of the notice. It is clear, therefore, that the notice issued under section 34(1) can at no time be put in issue in the proceedings under section 27 of the Act. All the circumstances specified in that section and which can be made the basis for claiming the relief of fresh assessment under that section, commence from the stage of issue of the notice under sections 22(4) and 23(2) of the Act. In a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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