Law: Income Tax Act, 1922

Section: 34,33(6)

Income-tax Act (XI of 1922)---Ss. 34 & 33 (6)--Notice for reopening of assessment on the ground of escapement of income after the Tribunal had set aside the order of I.A.C. and restored the original assessment without any fresh material on record--Legality. The Tribunal allowed the appeals of the assessee and set aside the order of Inspecting Assistant Commissioner and restored the original assessment order. Thereafter, the Income-tax Officer issued the notices to the assessee under section 34 of the Income-tax Act proposing to reopen the assessment on the ground that the income of the assessee escaped the assessment: It was contended by the assessee that the issuance of the notices by the Income-tax Officer was wholly without jurisdiction as after the order of the Income-tax Appellate Tribunal the Income-tax Officer ad no jurisdiction in the matter and could not issue the notices. It was contended that the original assessment orders haying been restored by the order, of the Income-tax Appellate Tribunal, the same attained finality under section 33 (6) of the Income-tax Act, 1922, and as such the issuance of the notices amounts to sitting over the of the Tribunal. The Income-tax Officer had no jurisdiction to issue the notices in the case under section 34 of the Income-tax Act. The assessee had specifically alleged that there was no material before the Income-tax Officer to justify issuance of notice to assessee under section 34 of the Act. In the counter-affidavit filed on behalf of the Department there were vague allegations in this regard. On Court enquiry during the course of arguments the department produced before the Court .the letter issued- by the Inspecting Assistant Commissioner to the Income-tax Officer and stated that the notices were issued on the basis of this letter. It is quite clear from that letter that it was written to Income-tax Officer by the Inspecting Assistant Commissioner as a follow up of his order by which he had set aside the assessment and remanded the cases for reassessment. The entire material including the letter was, therefore, available before the Tribunal when it decided the appeal of the assessee. In spite of existence…

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