Law:

Section:

Section 153 of the Income-tax Act, 1961 (Corresponding to section 34(3) of Indian Income-tax Act, 1922) - Income escaping assessment - Time limit for completion of - Assessment year 1951-52 - Assessment of assessee was completed for assessment years 1951-52 and 1952-53 - Subsequently, in pursuance of order passed under section 23A of 1922 Act, dividend was deemed to be distributed by company in which assessee was shareholder as on 29-10-1950 - Order under section 23A of 1922 Act was passed as on 28-3-1956 - In view of this order ITO issued a notice under section 34(1)(b) of 1922 Act to assessee for assessment year 1952-53 - AAC annulled said assessment holding that, proper assessment year for bringing to tax dividend income, was assessment year 1951-52 - Thereupon, ITO issued fresh notice under section 34(1)(b) of 1922 Act for assessment year 1951-52 - ITO rejected assessee's objection that said proceedings were barred by limitation holding that bar of limitation was removed in view of section 34(3) of 1922 Act - Whether direction of appellate authority in an order relating to assessment of one year does not warrant avoidance of bar of limitation under section 34 of 1922 Act against initiation of proceedings for assessment for another year - Held, yes - Whether, therefore, provision of section 34(3) of 1922 Act were not capable of being availed of and, consequently, reassessment proceedings under section 34(1)(b) of 1922 Act for assessment year 1951-52, were barred by limitation - Held, yes FACTS The assessee was a shareholder in a limited company, to which the provisions of section 23A of the 1922 Act were applied for the assessment year 1951-52 and the dividend was deemed to have been distributed to the assessee as on 29-10-1950. The order under section 23A of 1922 Act was passed on the 28-3-1956, but long before that the original assessment of the assessee for the assessment years 1951-52 and 1952-53 also had been completed. In view of this order the ITO issued a notice under section 34(1)(b) of the 1922 Act to the assessee for the assessment year 1952-53, and completed the assessment adding the amount of dividend. On appeal, the AAC annulled the assessment…

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