TMI Blog1931 (2) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... espect of the income received in the previous year. On 15th June 1927 further notices were served upon the assessee under Sections 22(4) and 23(2) of the Act. It does not appear that any further steps were taken in the matter by the Income Tax authorities until 17th July 1930, when a further notice under Section 23(2) was served upon the assessee. In due course an assessment was made on 8th August ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lose of the year of assessment without any valid notice being issued to an assessee under Section 34 of the Act. 2. Section 34 runs as follows: If for any reason income, profits or gains chargeable to Income Tax has escaped assessment in any year, or has been assessed at too low a rate, the Income Tax Officer may, at any time within one year of the end of that year, serve on the person liabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment proceedings at any rate up to the stage at which the order pi assessment is passed under Section 23(4) must be completed before the end of the year of assessment, that is, the year in ?which the tax is payable, and that otherwise the assessment proceedings ipso facto abate. In our opinion this contention is unwarrantable, and cannot be accepted. 5. We are of opinion that Section 34 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Deo of Kanika v. Commissioner of Income tax, Behar and Orissa 2 Income Tax Cases 82. His Lordship observed: It is quite possible that in certain cases no-demand could be made within the actual year for which the tax is payable. Provision is made, for disputes which may arise as to the acceptance or rejection of the assessee's return. If his return is not accepted then an enquiry takes plac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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