1960 (10) TMI 4

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..... the Income-tax Officer, Bombay City, served upon the appellant notices under section 34 read with section 22(2) of the Act for assessment of tax in respect of those years. The notice for the year 1943-44 was served on the appellant on March 27, 1952, for the year 1944-45 on February 16, 1953, for the year 1946-47 on April 4, 1951, and for the year 1947-48 on April 2, 1952. The Income-tax Officer completed the assessments in respect of the years 1943-44, 1944-45 and 1947-48 on May 6, 1953, and for the year 1946-47 on March 19, 1952. The orders of assessment were confirmed by the Appellate Assistant Commissioner and by the Income-tax Appellate Tribunal. At the instance of the appellant, the Income-tax Appellate Tribunal drew up a statement of .....

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..... ment of that year. In those cases where the Income-tax Officer had in consequence of information in his possession reason to believe that income, profits or gains had escaped assessment even though there was no omission or failure as mentioned in clause (a), he could under clause (b) within four years from the end of the year of assessment serve a notice of assessment. Admittedly, the notices issued by the Income-tax Officer for the years in question were issued within eight years from the end of the years of assessment and if clause (1)(a) of section 34 applied, the assessment was not barred by the law of limitation. But the appellant contended that the notices for assessment were, even though he had not made a return of his income for the .....

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..... rson who has taxable income to submit his return, and if he fails to do so, under section 34 of the Act the Income-tax Officer may commence proceedings for assessment within the period prescribed by clause (1)(a). Section 34(1)(b) applies only to those cases where there is no omission or failure to make a return of the income or to make a full and true disclosure of facts material to the assessment. To the appellant though non-resident income had admittedly accrued in the taxable territory and that income exceeded the maximum amount not chargeable to income-tax. The appellant not having submitted a return in pursuance of the notice issued under section 22(1), the Income-tax Officer was competent under section 34(1)(a) to issue notice at any .....

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