Law: Income Tax Act, 1922

Section: 34

Law: Income Tax Act, 1922

Section: 34

Law: Constitution of Pakistan, 1973

Section: 201

Income-tax Act, 1922 -- Section 34 -- Reassessment -- Income escaping assessment -- Notice to assessee -- Intimation to assessee regarding nature of alleged escapement and factum of approval from superiors and providing opportunity of hearing before initiation of proceedings -- Whether condition precedent -- Held no -- Escaped income -- Notice under section 34 -- Income-tax Officer no required by section 34 to intimate nature of alleged escapement nor factum that he has obtained approval from his superiors of initiating proceedings -- JUDGMENT This petition under Article 201 of the Interim Constitution of Islamic Republic of Pakistan (1972) challenges the notice issued by the Income-tax Officer dated 4th May, 1972, under Section 34 of the Income Tax Act to the petitioners. 2. The facts of the case are that the petitioner's Company was assessed for the year ending 30th June, 1969, by the Income-tax Officer Company Circle V on 29th April, 1972. On 4th May, 1972, he issued notice under Section 34 of the Income-tax Act to the petitioners. These notice was impugned. Mr. Muhammad Ali Khan learned counsel for the petitioners referred to third proviso to Section 34 of the Income-tax Act and argued that there are two pre-requisites for initiating proceeding. It reads:-- "Provided further that unless definite information has come into his possession the Income-tax Officer shall not imitate proceedings under this sub-section without obtaining the previous approval of the Inspecting Assistant Commissioner of Income-tax in writing." He submits that both the requisites are not mentioned in the notice and in fact is invalid. He relied on Calcutta Discount Co. Ltd. v. Income-tax Officer Companies District I, Calcutta and another {(1963) 41 ITR 191} a majority judgment by Supreme Court of India, in support of his contention. Reference was also made to Madan Mohan Lal. v. Commissioner of Income-tax, Punjab etc. {(1935) 3 ITR 438} a full Bench judgment of this Court which considered the authority of the Income-tax Officer under Section 34 of the Income-tax Act. Dalip Singh, J. wrote a dissenting judgment. The full Bench approved the Rangoon case reported das Commissioner of…

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