Law:

Section:

Section 153, read with sections 144 and 146, of the Income-tax Act, 1961 [Corresponding to section 34(3), read with sections 23(4) and 27 of the Indian Income-tax Act, 1922] - Assessment - Time limit for completion of - Assessment year 1951-52 - Whether any order of reassessment which marks termination of proceeding under section 27 of 1922 Act can quite legitimately be called reassessment under section 27 of 1922 Act - Held, yes - Whether if assessee invokes aids of section 27 of 1922 Act and invites officer to pass an order under that provision and officer purports to act under that provision, requirement of second proviso to section 34(3) of 1922 Act are fully satisfied and, therefore, proceedings under section 27 of 1922 Act would not hit by period of limitation prescribed under section 34(3) of 1922 Act - Held, yes FACTS While completing the assessment of the assessee, the ITO found three amounts in the books of account as capital. The assessee stated that the sum was advanced to him by his father-in-law. This was his first version. He later on submitted that he got the amount from his uncle. The other sum was stated to be given to him by his father. The ITO, however, passed assessment order on 29-3-1956 treating these sums of money as income earned by assessee from undisclosed sources. The officer acted under section 23(4) of the 1922 Act in making the assessment. The assessee filed an appeal against this order and also filed an application under section 27 of the 1922 Act to have the assessment cancelled on the ground that he had not received any notice from the officer under section 22(4). The officer passed an order on 24-8-1956 cancelling his previous assessment and on the same day reassessed the assessee again holding that sum in question was income from hidden sources and not capital as represented by the assessee. On appeal, the AAC dismissed the appeal on ground that same had become in fructuous. On second appeal, the Tribunal upheld the order of the AAC. On reference, the assessee submitted that the order of re-assessment was without jurisdiction as it had been made beyond the four year period of limitation prescribed under section 34(3) of the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492