Law: Income Tax Act, 1922

Section: 34

Income-tax Act (XI of 1922)--­-- S. 34(1)-Income escaping assessment-Jurisdiction of Income-tax Officer to initiate proceedings under S. 34(1) without being in possession of definite information-Held, barred unless he obtains previous approval of Inspecting Assistant Commissioner in writing---Assessment proceedings adopted without definite information and without prior approval-Held, coram non judice and subsequent proceeding null and void. ORDER MUHAMMAD MAZHAR ALI (PRESIDENT).-These are ten appeals--seven at the instance of assessee and three by the Department, ail arising from the combined order of the learned Appellate Assistant Commissioner Range, . . . . The assessee's appeals are for all the charge years i.e. 1970-71 to 1976-77 while the Department's appeals relate to the assessment years 1970-71, 1975-76 and 1976-77. Hence the appeals for 1970-71, 1975-76 and 1976-77 are cross-­appeals. The relevant year-wise facts giving rise to these appeals are these. 2. Originally the assessee filed returns for all the years, showing Nil incomes which were accepted as such and filed by the Income-tax Officer. The Income-tax Officer re-opened these proceedings by "The notices under section 34 of the Income-tax Act, 1922 (hereinafter called The Act) in respect of assessment years 1970-71 to 1975-76. In response to notices under section 34 of the Act, the assessee filed returns showing incomes as under :--- 1970-71 & 1971-72 Rs. -Nil-­ 1972-73 5,110. As salary 1973-74 9,280-do-­ 1974-75 & 1975-76 -Nil- 3. During the assessment proceedings the Assessing Officer made the assessee to submit statements of assets and liabilities under section 22(4-A) of the Act, pertaining to the accounting years relevant to each assessment year under appeal. Assessment Year 1970-71 For the charge year 1970-71, the total wealth was shown at Rs. 1,56,701, which included Prize Bonds of the value of Rs. 1,05,000 allegedly owned by the assessee and his wives and cash of Rs. 51,701. (Rs. 15,000 & Rs. 20,000 in the names of wives and Rs. 16,701 in his own name). The Income-tax Officer, for reasons recorded by him in the consolidated assessment order for 1970-71 to 1976-77, held that…

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