TMI Blog1928 (6) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... ), the first asking him to produce books and the second asking him for certain evidence under the sub-section which I have mentioned. On 21st August, in compliance with the notice under Section 22(4) the assessee produced his books of account. On the 6th September the Income Tax officer made an order in his order-sheet which raises the question which is debated in this case. The order runs: Accounts examined. There are many disclosures. The account need be checked again with Pachrukh account and the Chilhawaria account which latter was not produced. It is found that he has a business in grains etc., at Chilhawaria, where the firm goes by the name of Ramawtar Hiralal. He is directed to bring the account with original bijaks and bijak bahi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the notice contemplated by Section 22(4) is a notice which can be served only before a return has been made under the earlier part of the, section. Taking the section by itself there seems to us to be no basis for that argument, but the point which is raised is that taking Section 22 with Section 23 it is clear that the notice which is contemplated by Section 22(4) can be served only before the return has been made. But dealing first of all with the construction of Section 22 by itself, it provides: (4) The Income Tax officer may serve on the principal officer of any company or on any person upon whom a notice has been served under Sub-section (2), a notice requiring him, on a date to be therein specified, to produce, or cause to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion (4) of the same section (that is the notice to which we have already referred, the demand by the officer for accounts and documents) and then comes the clause in the section upon which most of the argument addressed to us has been based: Or, having made a return, fails to comply with all the terms of a notice issued under Sub-section (2) of this section. 8. The argument in fact is that Sub-section (4) of Section 23 is to be divided into two parts, the first division applying to the state of affairs when a return has not been made and the second applying to the case when in fact a return has been made. But there are clearly three cases contemplated by the sub-section and the words, having made a return are descriptive of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of the section. If the argument is right then the result would be that as a result of the failure to comply with the notice requiring the production of books, although that was at an earlier date than the necessity to comply with the notice to make a return, yet he might forthwith assess the assessee summarily although in fact the return had not been made. That is the very evil the assesses wishes to avoid That is reducing the argument to an (sic) and a construction of that nature would seem to us to be quite unwarranted by the terms of the section. Books of account were produced on 21st August 1925, and the order of 6/7th September demanded the production of the Chilhawaria branch; and another aspect of the same argument is that when on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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