Law: Income Tax Act, 1922

Section: 2(1),4(3)(viii),23(4),34,34(1)

Law: Income Tax Ordinance, 1979

Section: 2(1),65

Income-tax Act, 1922 -- Sections 2(1), 2(l)(b), 4(3)(viii), 34 proviso 3 -- Agricultural Income -- Income from sale of forest trees -- Whether Agricultural Income -- Omission to assess agricultural income from sale of forest trees of spontaneous growth -- Re-assessment -- Whether permissible -- "Definite information" -- Income-tax Officer aware of fact that assessee had income from forests -- Income-tax Officer coming to know in subsequent years that forests were of spontaneous growth -- "Definite information" within meaning of Section 34, proviso 3 - "Processes ordinarily employed by a cultivator" -- "Agricultural income" -- Forest of spontaneous growth -- Income not " agricultural" -- Corresponding Sections: Income-tax Ordinance, 1979 -- Sections 2(1), 65 -- ORDER (The Judgement was delivered by Syed Ali Khan, President). - These three appeals arise out of the decision of the Appellate Assistant Commissioner confirming the appellant's assessments made, respectively, for the charge years 1945-46, 1947-48 and 1948-49. The assessment for 1945-46 has been made under Section 23(4), read with Section 34. 2. In respect of the charge year 1945-46 the original assessment had been completed on the 24th October, 1945. In the course of assessment proceedings for subsequent years the Income-tax Officer came by definite information from which he discovered that the assessee's income from the sale of forest trees of spontaneous growth had escaped assessment. Thereupon he issued a notice under Section 34 on the 20th July 1948 and as a result of the proceedings thus initiated he included in the assessment the assessee's share of income from sale of forest trees which, according to him, were of spontaneous growth. So far as this assessment year is concerned, the first point that arises for consideration is whether the notice issued under Section 34 is valid in law and whether the supplementary assessment made in pursuance thereof can be sustained. 3. It is contended on behalf of the assessee that by the notice issued under Section 34 the Income-tax Officer clearly intimated to the assessee that he had in his possession definite information leading to the discovery of…

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