COMMISSIONER OF INCOME TAX Vs. BALVANTRAI S JAIN

JUDGEMENT

(1.) THOUGH the question referred to us has been couched in somewhat wide language as follows:

(2.) WHETHER , on the facts and in the circumstances of the case, the proceedings initiated under s. 34 of the Indian IT Act for the asst. year 1944 -45 were valid ?" the short point that we have to decide in this reference is whether, on the facts and in the circumstances of the case, there was an omission or failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the year in question. The assessment year under reference is the year 1944 -45 and the previous accounting year was the year ending the Samvat year 1999 (from 9th November, 1942, to 9th November, 1943).

(3.) TILL the latter date the assessment of the firm, Tejoo Kaya and Co., for the asst. year 1944 -45 had not been completed. For the asst. year 1943 -44 the Department accepted the assessee's claim of loss of Rs. 54,000 as per his letter dated 24th February, 1948. Similarly, for the asst. year 1944 -45 the assessment was completed without taking into account any share of the profit from the partnership.