9911796707
TMI Blog1968 (4) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Officer passed the order of assessment on the 21st of February, 1951. By that order the petitioners were assessed, under section 23 of the Indian Income-tax Act, 1922 (hereinafter referred to as " the Act "), on an income of Rs. 1,17,932. An appeal filed by the petitioners was allowed, in part, by the order of the Appellate Assistant Commissioner dated the 21st of May, 1953. Thereafter the petitioners moved the Commissioner under section 33A of the Act. By an order dated 19th October, 1954, the Commissioner accepted the petitioners' contention, set aside the assessment order and directed the Income-tax Officer to scrutinise the accounts of the petitioners in the light of certain objections filed on their behalf. It appears that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year 1946-47 on 14th January, 1958. The order of assessment did not take into consideration the two fixed deposits of rupees one lakh each in the Hindustan Commercial Bank, Dholpur, referred to earlier in this judgment. After the Central Board of Revenue had sanctioned the proceedings under section 34(1)(a) of the Act in respect of the two bank deposits mentioned above, the Income-tax Officer issued on 3rd November, 1961, a fresh notice under section 34(1)(a) of the Act in respect of those bank deposits. This notice was received by the petitioners on 9th November, 1961. Thereafter, on 27th November, 1961, the petitioners filed certain objections before the Income-tax Officer questioning the legality of that notice and followed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it clear that the proceedings were dropped to avoid duplication of proceedings about the original assessment, under section 23 of the Act, which were then pending before the Income-tax Officer in consequence of the order of remand passed by the Commissioner on 19th October, 1954. A perusal of the provisions contained in section 34 of the Act makes it clear that action under section 34(1)(a) of the Act is taken when the Income-tax Officer has reason to believe that : " . . . by reason of the omission or failure on the part of an assessee ... to disclose fully and truly all material facts necessary for his assessment for a particular year, income, profits or gains chargeable to income-tax have escaped assessment for that year, or have been u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... precluded thereafter from issuing notice in respect of such income under section 34(1) of the Act. Learned counsel placed reliance on an observation in the decision of the Supreme Court in the case of Calcutta Discount Co. Ltd. v. Income-tax Officer, Companies District I, Calcutta. The observation relied upon is to be found in paragraph 8 at page 376 of the above report ; it runs as follows : " From the primary facts in his possession, whether on disclosure by the assessee, or discovered by him on the basis of the facts disclosed, or otherwise, the assessing authority has to draw inferences as regards certain other facts ; and ultimately, from the primary facts and the further facts inferred from them, the authority has to draw the proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined effect of the amendment by section 18 of the Finance Act, 1956, passed on April 27, 1956, and the Income-tax (Amendment) Act, 1959, passed on March 12, 1959, as interpreted by the Supreme Court in the case of S. C. Prashar v. Vasantsen Dwarkadas is that, even though the period of eight years may have already expired, the Income-tax Officer would have the power to take action under section 34(1)(a) of the Act, provided the aggregate amount under-assessed was more than rupees one lakh and the sanction of the Central Board of Revenue had been obtained. There is no controversy that these conditions stood fully satisfied in the present case and it is, therefore, clear that the plea of limitation was also devoid of merits. No other contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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