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TMI Blog1962 (1) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... a return of his income under section 22 for the assessment year 1945-46, or to disclose fully and truly all the material facts necessary for his assessment for that year. The second appeal is from the order of the High Court of Bombay dated December 14, 1956, by which the said High Court rejected an application made by the present appellant under section 66(2) of the Income-tax Act. By that order the High Court refused to ask the Tribunal to state a case for its consideration of a question of law which the appellant said arose from the order of the Tribunal dated November 7, 1955. A preliminary objection as to limitation was raised before us on behalf of the respondent with regard to the appeal from the order of the Tribunal. It is not nec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act on September 13, 1946. In the assessment for the year 1945-46 (Samvat year 2000) the assessee's income was derived from his cloth business carried on at Ahmedabad, Karachi and Bombay and certain other properties. Separate sets of accounts were maintained for the head office as well as for the two branches. The books of accounts were produced and were examined by the examiner of accounts who submitted a report to the Income-tax Officer concerned. The total income for the assessment year 1945-46 was determined to be Rs. 5,294. Sometime after the completion of the said assessment, the Income-tax Officer concerned received information that the assessee had purchased a draft for Rs. 1,10,000 from the Exchange Bank of India and Africa Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment for that year. The Tribunal pointed out that at the time of the original assessment the assessee had produced his books of account with regard to all the three offices at Ahmedabad, Bombay and Karachi. The assessee also filed the balance-sheets relating to his business at the aforesaid three places. The Tribunal further pointed out that before completing the assessment for the years 1944-45 and 1945-46, the Income-tax Officer had called for all the relevant account books which had been examined by an examiner of accounts, an officer subordinate to the Income-tax Officer. This officer submitted a report relating to the account books of the Ahmedabad business and he mentioned therein that the assessee had accounts with the Exchange Ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee had failed to disclose the transaction of Rs. 1,10,000 in his return and the statements accompanying it, but whether there was any omission or failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the year in question. The appellant then moved the High Court of Bombay under section 66(2) of the Income-tax Act. That application, as we have stated already, was summarily dismissed by the High Court by its order dated December 14, 1956. The learned advocate for the appellant has contended before us that the finding of the Tribunal that there was no omission or failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment was ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed by the Tribunal that the question suggested was misconceived, because what the Tribunal had to consider was whether the proceeding under section 34(1)(a) was properly initiated by the Income-tax Officer in the year 1954. It must be remembered that the original assessment was completed on September 13, 1946, and more than four years had passed, and at the relevant time the period during which the Income-tax Officer could take action under section 34(1)(a) was eight years. It is true that the eight years had not expired on March 24, 1954, when the notice under section 34(1)(a) was issued, But the pre-requisite condition for the initiation of a proceeding under section 34(1)(a) is that " the Income-tax Officer has reason to believe that b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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