Law:

Section:

Section 147, read with section 153 of the Income-tax Act, 1961 (corresponding to section 34(1) read with section 34(3) of the Indian Income-tax Act, 1922) - Income escaping assessment - Information - Position prior to 1-4-1989 - Assessment year 1950-51 - Original assessment was made on 17-1-1955, but reassessment proceedings under section 34(1)(a) of 1922 Act, were initiated and assessment was completed on 15-3-1961 - Tribunal held that under section 34(1)(a) of 1922 Act assessment could have been completed within 8 years from end of year in which income was first assessed - As assessment could be made only by 31-3-1957, inasmuch as assessment was made on 15-3-1961, assessment was clearly beyond prescribed period of limitation - Whether when amendment of section 34 by Finance Act, 1956 deleting limitation for issue of notice was made, notice for reassessment was served well within period of limitation as allowed under section 34 as it then stood and, therefore, there was no invalidity in initiation of proceedings under section 34(1)(a) - Held, yes - Whether remedy of ITO to make assessment against assessee was not barred when amending Act came into force - That being so, inasmuch as 1956 Act extended period of limitation, it was extended period of limitation that would apply - Held, yes - Whether therefore, Tribunal was not right in holding that reassessment made in pursuance of section 34(1)(a) was barred by limitation - Held, yes FACTS The original assessment of assessee in the status of an individual was completed on 17-1-1955. Later on, it came to the notice of the department that the assessee had sold sal trees and timbers during the relevant accounting year, and accordingly proceedings under section 34(1)(a) of 1922 Act were initiated with the prior sanction of the Commissioner. That notice was served on the assessee on 30-11-1955. In response to that notice the assessee filed a return disclosing a total income, which was equivalent to that which was originaly assessed. The ITO, however, added an amount to the total income of the assessee by order dated 15-3-1961. An appeal was then filed by the assessee. It was contended that proceedings were barred by…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492