TMI Blog1960 (3) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... r the assessee on three grounds. (1) The initiation of proceedings under section 34 with the issue of the notice dated January 20, 1954, made four years after March 31, 1948, when the assessment year 1947-48 came to a close, was barred by limitation. (2) The assessees case did not fall within the scope of the second proviso of section 34(3) of the Act as it now stands amended. (3) If the proviso did apply, it was an unenforceable statutory provision, as it offended against the fundamental right of equal protection of laws guaranteed by article 14 of the Constitution and was therefore void under the article 13. Since in our opinion the first contention itself is well founded, we do not propose to deal with the second and third contentions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be no period of limitation at all, notwithstanding anything else stated in section 34(1) of the Act. If the right to reopen the assessment of the assessee under section 34(1) (b) lapsed on March 31, 1952, under the law of limitation as it stood on that date, the statutory amendment of the period of limitation, which took effect only on April 1, 1952, would not apply that this court pointed out in Janaba Muhamad Hussain Nachiar Ammal v. Commissioner of Income-tax ([1956] 29 ITR 848, 855.) : It is well settled that the law of limitation being procedural law, its provisions operate retrospectively in the sense that they apply to causes of action which arose before their enactment. But it is equally well established that if the right to su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the proviso was amended by Act 25 of 1953 with effect from April 1, 1952, it ran : Provided further that nothing contained in this sub-section shall apply to a reassessment made under section 27 or in pursuance of an order under section 31, section 33, section 33A, section 33B, section 66 or section 66A. The proviso as it now stands amended runs : Provided further that nothing contained in this section limiting the time within which any action may be taken or any order of assessment or reassessment may be made shall apply to a reassessment made under section 27 or to an assessment or re-assessment made on the assessee or any person in consequence of or to give effect to any finding or direction contained in an order under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of rectification effected under the enabling provisions of section 35 of the Act. We express no opinion on the question whether the assessees was a case that could have been brought within the scope of section 35 at all, had it been dealt with under that section, Factually, the Department invoked and applied only the powers vested in the Income-tax Officer by section 34. It is not open to us at this stage and in proceedings under section 66 to find whether an alternative basis may be found in law for sustaining the reassessment that was ordered by the Department and sustained by the Tribunal. The learned counsel for the Department referred to Commissioner of Income-tax v. Khemchand Ramdas ([1938] 6 ITR 414.). Their Lordships of the Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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