Law:

Section:

Section 34(1A) of the Indian Income-Tax Act, 1922 - Income escaping assessment - - Assessment year 1940-41 to 1946-47 - Whether once it is held that proceedings for assessment under section 34(1) of 1922 Act as well as under section 34(1A) of 1922 Act in matter of procedure, right of appeal etc. are identical, section 34(1A) of 1922 Act has to be read as an exception to section 34(1) of 1922 Act whereby limitation applicable to larger class of persons who can be dealt with under section 34(1) of 1922 Act, has been done away with for a smaller class of persons - Held, yes - Whether such removal of limitation in case of special class of evaders clearly has a nexus with purpose for which this provision of law was introduced, so that discrimination brought about by section 34(1A) of 1922 Act was not such as to render it void on ground of violating provisions of article 14 of Constitution - Held, yes FACTS The petitioner, on the basis of returns submitted by him to the Income-tax Officer, was assessed to tax for the relevant assessment years. Thereafter he received notices from the Secretary, Income-tax Investigation Commission, by which he was informed that his case had been referred to the Commission under section 5(1) of the Taxation on Income (Investigation Commission) Act, 1947. By these notices, the petitioner was directed to furnish to the Income-tax Investigation Commission certain information and to comply with certain requirements mentioned therein. Accordingly, the petitioner supplied most of the information sought and complied with the various requisitions. Thereafter, the petitioner received seven notices purporting to be issued under section 34(1A) of the 1922 Act from the Income-tax Officer, calling upon him to submit returns of his total income assessable to tax for the seven assessment years. The notices contained a mention that, in case the petitioner failed to file the returns as required, he was liable to ex parte assessment under section 23(4) of the 1922 Act and also to penalty and prosecution. Thereafter the petitioner sent a letter requesting the opposite party No. 2, to supply him with the reasons for the issue of notices under section…

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