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- Sections 23(2), (4) and 37 - Indian Income-tax Act, 1922 - Article 226 - Constitution of India CASES REFERRED TO Mohini Debi Malpani v. ITO [1970] 77 ITR 674 (Cal.), R. v. Shoreditch Assessment Committee [1910] 2 KB 859 (CA). Ujjam Bai v. State of Uttar PradeshAIR 1962 SC 1621, White & Collins v. Minister of Health [1939] 2 KB 838 ; [1939] 3 All ER 548 (CA) JUDGMENT Sabyasachi Mukharji, J.-This appeal relates to the assessment for income-tax for the assessment year 1950-51. On March 28, 1956, return for the said year was filed by the assessee showing an income of Rs. 3,148. Thereafter, on April 9, 1956, a revised return was filed showing an income of Rs. 3,421. On March 17, 1959, a notice under section 34(1)(a) of the Indian Income-tax Act, 1922, was served on the assessee. On July 16, 1959, the assessee filed the return pursuant to the aforesaid notice under section 34(1)(a). The impugned assessment in question was completed on January 29, 1960. The assessment was under section 23(4)/34(1)(a) of the Indian Income-tax Act, 1922. It appears that prior thereto there had been notice issued under section 23(2) of the Indian Income-tax Act, 1922, and notice had also been issued under section 37 of the said Act. As the question relates to the legality of the assessment it would be necessary to set out the relevant portion from the assessment order : "Notice under section 34(1)(a) was issued with the approval of the Commissioner of Income-tax, Calcutta, and served upon the assessee. The assessee made compliance by furnishing a return. Notice under section 23(2) was issued. Sri G. Chatterjee, A.R. of the assessee, appeared and explained the return. The assessee is a partner of Babulal Mohanlal, Morar, Gwalior, and his share of profit of the firm as per allocation is Rs. 8,883. It appears from the share allocation report that the assessee received interest amounting to Rs. 6,333 and the A.R. of the assessee was asked to explain the amount on which interest was received by the assessee. Sri G. Chatterjee explains that the assessee has got no capital in the firm's account and he was asked to produce the books of accounts of the firm to prove the genuineness of the…

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