Law:

Section:

Section 148 of the Income-tax Act, 1961 [Corresponding to section 34 of the Indian Income-tax Act, 1922] - Income escaping assessment - Issue of notice for - Assessment years 1936-37 to 1938-39 - 'A, B, C' and 'D' were assessed in status of 'association of individuals' - During assessment proceedings ITO found that business in hides was being carried on in Calcutta in name of 'H' and 'J' by same association of individuals - ITO issued notice under section 34 of 1922 Act to A without, however, indicating that notice to him was issued as 'principal officer' of 'association of individuals' consisting of himself and three others - Whether notice under section 34 of 1922 Act on ground that a part of income had escaped assessment or income had been assessed to income-tax at too low a rate can only be given to person assessed under section 23 of 1922 Act - Held, yes - Whether notice issued to 'A' under section 34 of 1922 Act was not bad in law and it was not necessary, though it would have been desirable if fact had been mentioned in notice that it was being issued to him as "principal officer" of an "association of individuals" consisting of himself and three others - Held, yes FACTS The family, consisting of 'A, B, C' and 'D', had some interest income from a company in which certain deposits were made. While completing the assessment for the relevant assessment years, the ITO found that the account books showed capital was contributed by four persons, namely, 'A, B, C' and 'D'. There was a common account in the name of 'A, B, C' and 'D' to which final profit or loss was transferred. The profit and loss was not divided. From the account books of assessee, it was clear that the assessee's status was that of an association of individuals. However, in the company, the deposit had been made and the shares had been purchased in the name of 'A' alone. The ITO held that the status was clearly of an association of individuals with 'A' as principal officer. During the assessment proceedings for the assessment year 1939-40, the ITO received definite information that a business in hides was being carried on in Calcutta in the name of 'H' and 'J', by the same association of…

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