9911796707
TMI Blog1961 (10) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... 1947-48. The facts of this appeal are as follows : On November 27, 1951, a notice was issued to the respondent under section 34(1)(a) of the Indian Income-tax Act calling upon him to make a return on the ground that his income had escaped assessment for the assessment year ending March 31, 1949. This notice was served on the respondent on November 29, 1956. The respondent objected that no notice under section 34 of the Income-tax Act could be issued to him because of the lapse of eight years from the end of the accounting year. This objection was overruled and the respondent filed on June 12, 1957, in the High Court of Mysore, a petition under article 226 of the Constitution for a writ of certiorari quashing the order made by the Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year because under the Income-tax Act the income of the previous year is assessed for the assessment year. For this purpose reference was made to some of the other provisions of the Income-tax Act. In section 3 of that Act, which is the charging section, it is provided : " 3. Where any Central Act enacts that income-tax shall be charged for any year at any rate or rates, tax at that rate or those rates shall be charged for that year in accordance with, and subject to the provisions of, this Act in respect of the total income of the previous year of every individual, Hindu undivided family, company and other local authority, and of every firm and other association of persons or the partners of the firm or the members of the association i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to income-tax to furnish, within such period not being less than sixty days as may be specified in the notice, a return, in the prescribed manner, setting forth (along with such other particulars as may be required by the notice) his total income and total world income during that year :.... " It shows, therefore, that a return has to be made for the year of assessment in regard to the total income during the previous year which is the accounting year ; in other words income-tax is assessed for the assessment year on total income of the previous year. When under section 34(1)(a) a return is required the return has to be made under section 22 for any year, and when the reference is to omission to make a return of the income under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rious sections of the Indian Income-tax Act which are set out above and the provisions of Indian Finance Act, 1948, it is clear that the words " that year " in section 34(1)(a) have reference to the assessment year and not the accounting year. Our attention was drawn to a judgment of this court in Pannalal Nandlal Bhandari v. Commissioner of Income-tax. In that case it was held that once a notice is given in the prescribed manner under section 22(1) of the Income-tax Act every person whose income exceeds the maximum amount, exempt from tax, is obliged to submit a return, and, if he does not do so it will be deemed that there was an omission on his part within section 34(1)(a). The question now debated was not raised there but it was obser ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
