1964 (3) TMI 116

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..... 27 of the Act. In respect of the assessment years 1953-54 and 1954-55, the assessee produced no return, although called upon to do so under section 22(2). He was thereupon served with a notice under section 22(4) and called upon to produce his accounts. On failure to produce them, the Income-tax Officer made an assessment under section 23(4). The assessee then asked for cancellation of the assess .....

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..... the Income-tax Officer having recorded a finding that there was sufficient case for non-compliance with the notice issued under section 22(4) was not bound to cancel the assessment made under section 23(4) and to proceed to make a fresh assessment even though there was no sufficient cause for non-compliance with the notice under section 22(2) ?" Section 27 under which the assessee sought the .....

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..... imperative, if, notwithstanding there being no sufficient cause to comply with the notice issued under section 22(2) there was sufficient cause for non-compliance with the notice issued under section 22(4), and that it does not make it necessary for the assessee to prove that there was sufficient cause for non-compliance with both the notices. It is clear from the provisions of section 27 that th .....

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..... tive but disjunctive and so the assessee can claim the cancellation of the assessment on one of the many grounds on which such cancellation could be sought under the section. So, what should follow is that, even if there was no sufficient reason for non-compliance with a notice issued under section 22(2), so long as there was sufficient reason for non-compliance with the notice issued under sectio .....

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..... -compliance with the notice issued under section 22(4), was bound to cancel the assessment made under section 23(4) and to proceed to make a fresh assessment even though there was no sufficient cause for non-compliance with the notice under section 22(2). The assessee will get his costs in the reference. Advocate's fee, rupees Two hundred and fifty (Rs. 250).
Case laws, Decisions, Judgeme .....

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