INCOME TAX OFFICER ALLEPPEY Vs. S VEERIAH REDDIAR

JUDGEMENT

(1.) THIS is an appeal by the Income-tax Officer, Alleppey, against the decision in Veeriah Reddiar v. Income-tax Officer. That decision quashed exhibit P-1 dated 27th March, 1961, a notice issued to the respondent before us under section 34 of the Indian Income-tax Act, 1922, in respect of the assessment year 1952-53.

(2.) THE notice was issued after four years and before eight years from the end of that assessment year, and it is common ground that the conditions to be satisfied are those embodied in clause (a) of sub-section (1) of section 34. Under that provision a notice can be served on the assessee only if "the Income-tax Officer has reason to believe that by reason of the omission or failure on the part of an assessee to make a return of his income under section 22 for any year or to disclose fully and truly all material facts necessary for his assessment for that year, income, profits or gains chargeable to income-tax have escaped assessment for that year, or have been under-assessed, or assessed at too low a rate, or have been made the subject of excessive relief under the Act, or excessive loss or depreciation allowance has been computed."

(3.) THE curious thing in this case is that neither in the first affidavit dated 5th July, 1961, nor in the second affidavit dated 18th July, 1962. which was permitted to be filed by the court after the hearing of the case had begun, is there an averment to the effect that the Income-tax Officer had reason to believe that any income had escaped assessment or had been under-assessed by reason of any omission or failure on the part of the assessee to disclose fully and truly all material facts necessary for such assessment. THE judgment under appeal said :