Law: Income Tax Act, 1922

Section: 34(1)

Income-tax Act (XI of 1922)----S.34 (1)-Re-assessment- Initiation of fresh re-assessment proceedings pending proceedings for re assessment already initiated-Validity. Section 34 (1) of the Income-tax Act places no limit on the number of notices of re-assessment that may he issued so long as they are within the time limit specified in the section. There can be no restriction as to the number of proceedings that can be taken to re-open an assessment where it is found that any income of the assessee has for one reason or another escaped assessment. Similarly, there is no bar to a fresh notice of re-assessment being given even though proceedings on a previous notice which are still pending have not been finally disposed of. Commissioner of Income-tax v. Jagan Nath Maheshwary (1957) 32 I T R 418 and Lachhiram Basantlal, In re (1931) I L R 58 Cal. 909 ref. JUDGMENT CHOPRA, J.-----The following question of law has been referred by the Income-tax Appellate Tribunal for decision of this Court under section 66 (1) of the Indian Income-tax Act. Whether, on the facts and in the circumstances of this case, the revised assessment was unsustainable on the ground that the second notice of February 8, 1954, under subsection (1) of section 34, was issued while the proceedings which bad commenced with the issue of the first such notice of May, 1953, were yet pending and had not been completed ? The facts which gave rise to Ole reference are these Messrs Atma Ram Bindra Ban, the assessee, is a Hindu undivided family and the assessment in question was a revised assessment for the year 1947-48 made in terms of section 34 of the Indian Income-tax Act. The original assessment for this year was made on 8th August, 1951. Subsequently, on the examination of the books of the assessee in certain other proceedings it transpired that certain cash credits amounting to Rs. 37,880 entered in the assessees personal account had escaped consideration in the original assessment. A notice under subsection (1) of section 34 of the Income-tax Act was issued. Some time later, viz. on 8th February, 1954, while the proceedings started on the first notice were still pending, the Income-tax Officer served…

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