BALCHAND Vs. INCOME TAX OFFICER SAGAR

JUDGEMENT

(1.) The lncome-tax Officer, Sagar, assessed the appellant to pay under S. 23(3) of the Income Tax Act, 1922, tax on his income computed for the assessment years 1945-46 and 1946-47. On June 24, 1959, the Income-tax Officer issued a notice of reassessment under S. 34 of the Income Tax Act, 1922, reciting that the income of the appellant had escaped assessment and requiring the appellant to submit a return of his total world income assessable for the year ending March 31, 1946. On August 17, 1959, the appellant filed a return for the assessment of his income for the year 1946-47. The appellant was informed by the income tax Officer that he was called upon to submit a return of his income for the assessment year 1945-46 and not for the assessment year 1946-47. The appellant on March 22, 1960, filed a fresh return for the assessment year 1945-46 admitting that he had "misunderstood the notice" served upon him. In his return he admitted that he had a third share in a firm styled "Sheoprasad Shobharam." On March 14, 1967 the Income-tax officer issued another notice under S. 148 of the Income Tax Act, 1961, calling upon the appellant to submit a return of his income for the assessment year 1946-47 on the ground that income of the appellant had escaped assessment. The appellant then moved the High Court of Madhya Pradesh for an order quashing the notices dated June 24, 1959 and March 14, 1963, and for a writ of mandamus or prohibition restraining the Income-tax Officer from continuing the proceedings of assessment under the two notices. The High Court rejected the writ petition. Against the order of the High Court, the appellant has appealed to this Court with special leave.

(2.) The appellant contended that by the notice dated June 24, 1959, he was called upon to file a return for the assessment year 1946-47 and initiation of proceedings on that notice for reassessment of income for the assessment year 1945-46 was incompetent. In the preamble of the notice it is recited:

(3.) The appellant then contended that in any event on August, 17, 1959, the appellant had submitted a return for the assessment year 1946-47 and even if no notice for assessment year 1946-47 calling upon him to submit a return for that year was issued, a notice under S. 34 of the Income Tax Act, 1922, or under S. 148 of the Income Tax Act, 1961, was incompetent so long as the return submitted by the appellant in August 1959 for the assessment year 1946-47 was not considered and disposed of Reliance in support of this contention was placed upon two decisions of this Court:Commissioner of Incometax vs. Ranchhoddas Karsondas, 1959-36 ITR 569 and Commissioner of Income-tax vs. S. Raman Chettiar, 1965-55 ITR 630 .