AMOLAK SINGH JAIN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The following question has been referred to this Court at the instance of the assessee under Section 66(1) of the Indian Income-tax Act, 1922 (hereinafter referred to as the Act of 1922) :-

(2.) The matter relates to the assessment years 1959-60 and 1960-61, the accounting periods for which were the preceding financial years.

(3.) For the assessment year 1959-60 the Income-tax Officer issued notice under section 22(2) of the Act of 1922 and the same was received by the assessee on July 5, 1959. The assessee, however, filed no return. Notice dated July 23, 1960, under section 22(4) of the above- mentioned Act was then issued by the Income-tax Officer for August 2, 1960. The assessee filed an application for adjournment on the ground that he was busy in connection with the release of a picture. The case was then adjourned to August 23, 1960. Another notice dated January 30, 1962, under section 22(4) of the Act of 1922 was issued by the Income-tax Officer for February 15, 1962. The assessee again applied for adjournment on the ground that he was busy in elections. For the assessment year 1960-61 notice under section 22(2) was issued by the Income-tax Officer on May 12, 1960, and it was served on the assessee on July 19, 1960. Notice was thereafter issued fixing the hearing on March 6, 1962. The assessee applied for time on the ground of ill health. Notice dated September 29, 1962 was thereafter issued to the assessee for October 17, 1962. This notice was received by the assessee on October 15, 1962. The assessee sent telegram from Hansi asking for adjournment. No adjournment was, however, granted by the Income-tax Officer and the assessments for both the years were completed under section 23(4) of the Act of 1922 on October 18, 1962, on incomes of Rs. 35,360 and Rs. 33,360. Appeals filed by the assessee were dismissed by the Appellate Assistant Commissioner, "The assessee then went up in appeal before the Income-tax Appellate Tribunal and it was argued on his behalf that as the Act of 1922 had been repealed before the date of the assessment orders, the assessments could not be made under the Act. It was also urged that there was no provision in section 297(2) of the Income-tax Act of 1961 (herein after referred to as the Act of 1961) which permitted the assessment in question to be made under the Act of 1922. The Tribunal repelled the above contention and held that the assessments under the Act of 1922 could be made in view of the provisions of section 297(2) (c) of the Act of 1961. The Tribunal then referred to the provisions of section 6 of the General Clauses Act and held that in view of those provisions also the assessments in question made under the Act of 1922 were valid and sustainable in law. The question reproduced above was thereafter referred to this Court.