GULAB CHAND DHANNA LAL Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS is an appeal under Chapter VIII, rule 5, of the Rules of court, against the judgment and order Manchanda J., dated the 28th of March 1962, whereby the appellants petition under article 226 of the Constitution was dismissed. After hearing learned counsel for the appellants in support of this appeal, we find it devoed of merit.

(2.) THE petitioners having filed their income-tax Officer return regarding the assessment year 1946-47, the Income-tax Officer passed the order of of assessment on the 21st of February, 1951. By that order the petitioners were assessed, under section 23 of the India Income-tax Act, 1922 (hereinafter referred to as the Act), on an income of Rs. 1,17,932. An appeal filed by the petitioners was allowed, in part, by the order of the Appellate Assistant Commissioner dated the 21st of May, 1953. THEre-after the petitioners moved the Commissioner under section 33A of the Act. By an order dated 19th October, 1954, the Commissioner accepted the petitioners contenton, set aside the assessment order and directed the Income-tax Officer to scrutinise the accounts of the petitioners in the light of certain objections filed on their behalf.

(3.) THE question, therefore, of issuing a notice under section 34(1)(a) of the Act would arise only after the assessment for the year 1946-47 was completed, because it could only be after the completion of that assessment that it could be said that the two fixed deposits in the Hindustan Commercial Bank, Dholpur, had escaped assessment. A similar situation arose before Pathak J. in the case of Satya Narain Prasad v. Income-tax Officer, C-Ward, Varanasi, under parallel provisions contained in the Income-tax Act of 1961. It was held that, while proceedings for the original assessment were pending before the Income-tax Officer, there was no question of issuing notice under section 148 of the Income-tax Act of 1961, which, in terms, is similar to the provisions contained in section 34 of the Income-tax Act of 1922.