Law:

Section:

Section 147 of the Income-tax Act, 1961 [Corresponding to section 34 of the Indian Income-tax Act, 1922] - Income escaping assessment - Position prior to 1-4-1989 - Assessment year 1950-51 - Whether question as to whether period of eight years was available to respondent-ITO for making assessment under section 34 of Act of 1922 being a question of fact, same could not be resolved in writ proceedings under article 226 of Constitution of India - Held, yes FACTS After the completion of assessment proceedings against petitioner's husband for the relevant assessment year, the respondent-ITO called upon the petitioner to furnish a statement of her wealth. In compliance, she filed a statement, disclosing a bank deposit in her name. Thereafter, the petitioner's husband died. The respondent initiated proceedings under section 34 of 1922 Act for assessment of the sum of bank deposit as part of her husband's income, however, said proceedings were dismissed on appeal. Thereafter, in the year 1959, the respondent again issued notice under section 34 of 1922 Act to petitioner for assessing the amount in question as part of her husband's income. On writ : HELD The question that arose for determination was as to whether the period of eight years was available to the respondent for making the assessment under section 34 of 1922 Act. That would depend on whether the matter fell under section 34(1)(a) or section 34(1)(b) of 1922 Act. The petitioner contended that it was in consequence of the information obtained by the respondent from the wealth statement furnished by the petitioner, that he issued the first notice under section 34 of 1922 Act and took out proceedings. The respondent, however, contended that petitioner's husband had, during the assessment proceedings for the year 1950-51, failed to disclose "fully and truly" the material facts relating to the deposit in his wife's name, and therefore the matter was governed by section 34(1)(a ) of 1922 Act. The jurisdiction of the respondent to proceed against the petitioner at such a distance of time under section 34 of 1922 Act depended therefore on the decision of the above question of fact. In a proceeding under article 226…

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