G D JATIA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The facts and the proceeding leading up to the present reference are shortly as follows. One K. L. Jatia, since deceased, was assessed to income-tax in the assessment year 1945-46, the relevant previous year being the period from October 30, 1943, to October 17, 1944. The total income was computed at Rs. 82,095 which was later revised to Rs. 37,269. Subsequently, on receipt of information that the income of the assessee exceeding Rs. 1 lakh had escaped assessment in the said assessment year, the ITO issued to the assessee a notice under Section 34(1A) on March 29, 1956. The assessee did not comply therewith and did not file any return pursuant thereto, A subsequent notice under Section 22(4) of the 1922 Act served on the assessee on July 12, 1956, was similarly ignored. Thereafter, on January 19, 1958, the assessee died. After his death, the ITO reassessed his income for the said assessment year under Section 34 and computed the same to be Rs. 22,18,546.

(2.) Being aggrieved by the order of reassessment the legal heirs and representatives of the assessee preferred an appeal contending, inter alia, that they had not been brought on record and that the reassessment had been made on the deceased without giving any reasonable opportunity to his legal heirs and representatives. The AAC allowed this appeal and set aside the assessment. The ITO was directed to make a fresh reassessment in accordance with law.

(3.) Thereafter, on July 28, 1962, the ITO issued a notice under Section 22(4) to the legal representatives of the said assessee, who, however, did not comply with such notice. On August 13, 1962, total income of the deceased for the said assessment year was reassessed at Rs. 22,46,546.