ITO ALLEPPEY Vs. VEERIAH REDDIAR

JUDGEMENT

(1.) his is an appeal by the Income Tax Officer, Alleppey, against the decision in O. P. No. 642 of 1961 1963 KLJ 290 ). That decision quashed Ext. P. 1 dated 27-3-1961, a notice issued to the respondent before us under S.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-s.(1) of S.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 S.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 underassessed, 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.) It is agreed that there has been no omission or failure on the part of the assessee to nuke a return of his income under S.22. The reason for the notice, as stated in the opening paragraph of Ext. P1, reads as follows: