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TMI Blog1973 (2) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal of the petitioner. The Appellate Tribunal found that the assessee derived income from salary and observed that the said amount of Rs. 25,000 could not be earned nor constitute the petitioner's income from any known sources in that assessment year as the amount could not have been earned by the assessee on the first day of the accounting year. The Appellate Tribunal observed: "It must be taken to have been earned by him in the earlier year or years." Thereafter, the present Income-tax Officer, " B " Ward, District VI, Calcutta, wrote the aforesaid letter dated August 17, 1971, asking the petitioner to show cause on August 28, 1971, as to why proceedings under section 147(a) should not be initiated against the petitioner for the assessment year 1958-59. By a letter dated August 28, 1971, the petitioner showed cause as asked for. Thereafter, the petitioner received the said impugned notice dated January 25, 1972, under section 148 of the Income-tax Act, 1961, issued by the respondent No. 1 proposing to assess the income of the petitioner for the said assessment year 1958-59, on the ground that he had reason to believe that the income of the petitioner in that year had esca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f assessment or reassessment in cases falling within clause (a) of sub-section (1) or sub-section (1A) of this section shall be made after the expiry of four years from the end of the year in which the income, profits or gains were first assessable : Provided that where a notice under clause (b) of sub-section (1) has been issued within the time therein limited, the assessment or reassessment to be made in pursuance of such notice may be made before the expiry of one year from the date of the service of the notice even if at the time of the assessment or reassessment the four years aforesaid have already elapsed : Provided further that nothing contained in this section limiting the time within which any action may be taken or any order, assessment or reassessment may be made shall apply to a reassessment made under section 27 or to an assessment or reassessment made on the assessee or any person in consequence of or to give effect to any finding or direction contained in an order under section 31, section 33, section 33A, section 33B, section 66 or section 66A." 149. Time limit for notice.-(1) No notice under section 148 shall be issued,- (a) in cases falling under clause (a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be issued under section 148 after the expiry of four years from the end of the relevant assessment year, unless the Commissioner is satisfied on the reasons recorded by the Income-tax Officer that it is a fit case for the issue of such notice. Section 297 of the Act of 1961 reads as follows: " 297. Repeals and savings.-(1) The Indian Income-tax Act, 1922 (XI of 1922), is hereby repealed. (2) Notwithstanding the repeal of the Indian Income-tax Act, 1922 (XI of 1922) (hereinafter referred to as the repealed Act) .-.... (d) where in respect of any assessment year after the year ending on the 31st day of March, 1940,-- (i) a notice under section 34 of the repealed Act had been issued before the commencement of this Act, the proceedings in pursuance of such notice may be continued and disposed of as if this Act had not been passed ; (ii) any income chargeable to tax had escaped assessment within the meaning of that expression in section 147 and no proceedings under section 34 of the repealed Act in respect of any such income are pending at the commencement of this Act a notice under section 148 may, subject to the provisions contained in section 149 or section 150, be issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntained in any order passed by any authority mentioned in the said sub-section in spite of the limits to the time for the issue of the notice under section 148 prescribed by section 149 of the Act, such notice may be issued at any time and for that purpose the requirements laid down in section 151 of the Act need not be complied with. In any event, the sanction of the Central Board of Direct Taxes has been obtained as is evident from the authentication made by the Secretary of the Board. The case of the respondents is that they, by and under the said notice, wanted to make an assessment " in consequence of or to give effect to any finding or direction " contained in the above-mentioned order passed by the above-mentioned Appellate Tribunal. The relevant part of the order of the Income-tax Appellate Tribunal, Bangalore Bench (Calcutta Camp), passed in I.T.A. No. 13106 of 1965-66 (Assessment year: 1959-60), Bakshish Singh v. Income-tax Officer, " B " Ward, Dist. VI, a copy whereof has been set out as annexure " C " to the petition is set out hereunder: " The said amount of Rs. 25,000 cannot thus be earned or constituted his income from any known source. The account year in such cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iso quoted earlier in the judgment came up for consideration. The Supreme Court held that by reason of the reference to the said provisions, the powers and jurisdiction conferred on the respective authorities. tribunals or courts mentioned in the said provisions were not enlarged or modified. The Supreme Court was further pleased to observe that the said proviso only lifted the bar of limitation in respect of certain assessments made under certain provisions of the Act and the lifting of the bar could not be construed as having the effect of enlarging the jurisdiction of the Tribunals under the relevant sections. The lifting of the bar was provided for only to give effect to the orders that might be made by the appellate, revisional or reviewing tribunals within the scope of their respective jurisdictions. The terms " finding " or " order " or " direction " mentioned in the said proviso was considered by the Supreme Court on the basis of various authorities including Pt. Hazari Lal v. Income-tax Officer and Lakshman Prakash v. Commissioner of Income-tax , and Order XX, rule 5, of the Code of Civil Procedure. The Supreme Court held that the expression "finding" could not be any inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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