Law:

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Income-tax Act (XI of 1922), S. 34 (1) (a)-Re-assessment " Omission to disclose fully and truly all material facts" Question of fact-All accounts produced and examined by Officer- Re-assessment under S. 34 (1) (a)-Legality-Appeal to Supreme Court from order of Tribunal-Maintainability-Constitution of India, Art. 136.   Save in exceptional and special circumstances, the Supreme Court would not exercise its power under Article 136 of the Constitution in such away as to by-pass the High Court by entertaining an appeal direct from the order of the Tribunal and thereby ignore the decision given by the High Court.   Chandi Prasad Chokhani v. State of Bihar (1961) 43 I T R 498 (S C) fol.   The pre-requisite condition for the initiation of a proceeding under section 34 (1) (a) of the Income-tax Act, 1922 is that the Income-tax Officer has reason to believe that by reason of the omission or failure on the part of the assessee . . . to disclose fully and truly all material facts necessary for his assessment for that year, income, profits or gains chargeable to income-tax have escaped assessment etc. That condition must be fulfilled before the Income-tax Officer can take action under section 34 (1) (a).   Calcutta Discount Co. Ltd. v. Income-tax Officer, Calcutta (1961) 41 I T R 191 (S C) ref.   At the time of the original assessment for the year 1945-46 the assessee had produced account books and balance-sheets of all his branch offices. The Income-tax Officer had the account books examined by his subordinate, the Examiner of Accounts, who had submitted his report, in which he had also stated that the assessee had accounts with the Exchange Benk of India and Africa, and other banks. The assessment was made on September 13, 1946. The Income-tax Officer came to know later that the assessee had taken a draft for Rs. 1,10,000 from the Bombay branch of the aforesaid bank and deposited it on July 17, 1944, in the Ahmeda bad branch of the said bank. The Income-tax Officer issued notice for re-assessment under section 34 (1) (a) on the 24th March 1954, and by revised assessment order, added the sum of Rs. 1,10,000 on the 15th October 1954. The…