9911796707
TMI Blog1960 (12) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... e former State of Mysore. The Mysore Income-tax Act was repealed and the Indian Income-tax Act was brought into force in the Part B State of Mysore as from April 1, 1950. The appellants had adopted as their year of account July 1 to June 30 of the succeeding year and they were assessed under the Mysore Income-tax Act on that footing for the year of assessment 1949-50, corresponding to the year of account July 1, 1948, to June 30, 1949. After the Indian Income-tax Act was applied to the State of Mysore, on December 26, 1950, notice under section 22(2) of the Indian Income-tax Act was served upon the appellants requiring them to submit their return of income for the assessment year 1950-51. On September 8, 1952, the appellants submitted their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Officer to consider this credit in the assessment for the year 1950-51 after giving opportunity to the appellants to explain the nature and source thereof. Before the appeal was disposed of by the Appellate Assistant Commissioner, the appellants had submitted a fresh return for the assessment year 1950-51 purporting to do so under section 22(3) of the Indian Income-tax Act. Pursuant to the direction of the Appellate Assistant Commissioner, the Income-tax Officer issued a notice of reassessment under section 34 of the Income-tax Act and served it on October 15, 1957, calling upon the appellants to submit a fresh return. The appellants thereupon submitted a petition under article 226 of the Constitution to the High Court of Mysore prayin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofits or gains . . . . . . . ; and the provisions of this Act shall, so far as may be, apply accordingly as if the notice were a notice issued under that sub-section. " In the course of the assessment proceedings for 1951-52, the appellants produced their books of account containing an entry dated July 1, 1949, showing an opening cash balance of Rs. 1,87,000 odd which was not satisfactorily explained. Though called upon, they did not produce their books of account for the earlier year. The appellants had failed to disclose in their return for the assessment year 1950-51 any income. In the circumstances, the Income-tax Officer had reason to believe that by reason of failure on the part of the appellants to disclose fully and truly all mate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was open to him to issue a notice for reassessment. Under section 22, sub-section (3), an assessee may submit a revised return if after he has furnished the return under sub-section (2) he discovers any omission or wrong statement therein. But such a revised return can only be filed " at any time before the assessment is made " and not thereafter. The return dated February 26, 1957, was submitted after the assessment was made pursuant to the earlier return and it could not be entertained. Nor could the lodging of such return debar the Income-tax Officer from commencing a proceeding for reassessment of the appellant under section 34(1) of the Indian Income-tax Act. There is also no substance in the contention that for the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a period prior to such previous year and therefore liability to pay tax in respect of that period could be assessed not under the Mysore Income-tax Act, but under the Indian Income-tax Act. It was urged that this interpretation of section 13 may, when the account year of an assessee does not coincide with the financial year, lead to double taxation of the income for the account year ending between April 1, 1949, and March 31, 1950. But in order to avoid the contingency envisaged by the appellants, the Central Government has, in exercise of its power under section 60A of the Indian Income-tax Act, issued the Part B States (Taxation Concessions) Order, 1950, which by clause 5(1) provides amongst other things, that the income, profits and gai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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