LAWS(KER)-1962-8-16

VEERIAH REDDIAR Vs. INCOME TAX OFFICER

Decided On August 02, 1962
VEERIAH REDDIAR Appellant
V/S
INCOME-TAX OFFICER, ALLEPPEY. Respondents

JUDGEMENT

(1.) In this writ petition, Mr. P. K. Kurien, learned counsel for the petitioner, challenges the proceedings sought to be taken by the respondent, the Income Tax Officer, Alleppey, on the basis of a notice issued, purporting to be under S.34 of the Indian Income Tax Act, 1922, evidenced by Ext. P. 1, dated 27th March 1961.

(2.) A perusal of the notice Ext. P. 1, will show that the Income Tax Officer states that he has reason to believe that the petitioner's income assessable to income tax for the assessment year 1952-53 has : (a) escaped assessment, and (b) been underassessed. It is also stated that the officer proposes to reassess the said income that has: (a) escaped assessment, and (b) been underassessed. On this basis, the Income Tax Officer requires the petitioner to deliver to him, within the period mentioned therein, a return of the total income and total world income, assessable for the year, ending 31st March 1953. There is a further statement in the said notice to the effect that the notice was being issued, after obtaining the necessary sanction of the Commissioner of Income Tax, Kerala, Ernakulam.

(3.) The jurisdiction of the officer to initiate proceedings on the basis of the notice Ext. P. 1, is attacked by Mr. P. K. Kurien, learned counsel for the petitioner, particularly on two grounds: (1) that in taking action under S.34 of the Indian Income Tax Act, 1922, in a case where the income which is alleged to have escaped assessment, or income, the amount of which is alleged to have been underassessed, is below Rs. 1,00,000/- when proceedings are initiated in respect of the same under S.34(1)(a) of the Indian Income Tax Act, 1922, the notice should have been issued within eight years of the last day of the accounting year. And, in this case, the learned counsel urged that the period of eight years expired on 15-8-1959; whereas the notice Ext. P. 1 is issued only on 27-3-1961.