TMI Blog1944 (2) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... ) to make the Regulations in question, and (ii) to order retrospective application thereof ? (b) Whether the Regulation in question comes within the powers of the Governor to legislate for the peace, order and good government of the Province ? Question No. 1.-The facts which are necessary to be stated are these. For the year 1937-38 the assessee was assessed for a sum of ₹ 9,000 on the 4th of September, 1937. On the 7th May, 1938 proceedings under Section 34 of the Act were started on the ground that income from Madras branches of the assessee had escaped taxation. On the 30th of November, 1938, these proceedings-terminated and the assessee was assessed for a sum of ₹ 22,000 including the income from the Madras branc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce. We considered the arguments of the parties and found that the notice under Section 34 of the Income-tax Act was issued on 29th July 1939 and in this notice it was not intended to assess the Madras branch or any other branch but the notice clearly stated that income of the appellant had partially escaped assessment. The appellant was not assessed in respect of his full income and because of the partial escapement the further notice was perfectly valid and the subsequent assessment was properly completed under Section 34 of the Indian Income-tax Act. It does not seem to have been drawn to the notice of the Income-tax authorities that the provisions of Section 34 which apply in this case are the provisions under the new Act which came ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, have not been satisfied. For these reasons the answer to the first question must be given in favour of the assessee, and I must hold that the notice under Section 34 of the Indian Income-tax Act issued on the 29th July 1939 was not tenable in law. It was conceded on behalf of the assessee and on behalf of the Income-tax Department that if the answer to the first question was in favour of the assessee, the other questions referred to would become academic and need not be answered. Accordingly it is unnecessary to express any opinion on those questions. As the assessee has succeeded on the first question which would result in the revised assessment being set aside, he is entitled to the costs of this reference. I would assess the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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