BALCHAND Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) BY this application under article 226 of the Constitution of India the petitioner prays for the issue of a writ of certiorari for quashing a notice said to have been issued to him on 24th June, 1959, under section 34 of the Indian Income -tax Act, 1922, for escaped assessments in respect of the assessment year 1946 -47, as also for quashing a notice issued on 14th March, 1963, under section 148 of the Income -tax Act, 1961, for assessment under section 147 of the Act for the assessment year 1946 -47.

(2.) THE petitioner says that the on 24th June, 1959, a notice was issued to him by the Income -tax Officer, Sagar, under section 34 of the old Act for the escaped assessment in regard to the assessment year 1946 -47; that the proceedings on the basis of this notice were pending when the Act of 1961 came into force; and that during the pendency of these proceedings the Income -tax Officer issued another notice to him on 14th March, 1963, under section 148 of the Act of 1961, for the assessment under section 147 in respect of the assessment year 1946 -47. The appellants contention is that in view of the provisions of section 34(1A) of the Act of 1922, as construed by this court in Rustomji Cowasji Jall v. Income -tax Officer, and Balchand v. Income -tax Officer, Sagar, no proceedings under section 34(1A) could be started against the him in respect of the assessment year 1946 -47 after 31st March, 1956; that, consequently, the proceedings initiated pursuant to the notice dated 24th June, 1959, were barred by time : and that, therefore, notice dated 24th June, 1959, were barred by time : and that, therefore, on notice under section 148 of the new Act could also be issued to him for assessment under section 147 of that Act for the assessment year 1946 -47.

(3.) THE plain meaning of the above provisions is that if no proceedings under section 34 of the repealed Act for escaped assessment in regard any assessment year are pending at the time of the coming into force of the new Act, a notice under section 148 can be issued. As in regard to the applicant no such proceedings were pending for the assessment year 1946 -47, the notice issued to him under section 148 is clearly in order and valid.