THE COMMISSIONER OF INCOME TAX Vs. NAND LAL

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Delhi Bench "B', has referred the following two questions of law for our opinion:

(2.) ON facts, there is no dispute. The Assessee was assessed in the status of a individual for the assessment year 1949 -50, the previous year of which ended on the 31st of March, 1949. He was assessed on the basis of a voluntary return filed on 25th February. 1956 showing an income of Rs. 2,594 -8 -0. The Income -tax Officer proceeded to assess him on an income of Rs. 37,313 on the 20th of February, 1958, on the ground that the Assessee had concealed his income and, therefore, his case fell under Section 28(1)(c). It may be mentioned that the Income -tax Officer proceeded to make the assessment under Section 23(3) read with Section 34. But no notice under Section 34 was at all issued to the Assessee under Sub -section (1). The Assessee went in appeal to the Appellate Assistant Commissioner who accepted the Assessee's contention and held that as there was no return filed within four years period during which the assessment could be lawfully made, there was no return at all; and the Income -tax Officer had no jurisdiction to make an assessment under Section 23(3) read with Section 34(1)(a) of the Income -tax Act, 1922. Against this decision, the Commissioner preferred an appeal to the Income -tax Appellate Tribunal; and contended that the view of the Appellate Assistant Commissioner was wrong because he had misinterpreted the decision of the Madras High Court in S. Santosha Nadar v. First Additional Income -tax Officer Tuticorin and Anr. : 42 I.T.R. 715. The Tribunal affirmed the decision of the Appellate Assistant Commissioner because the view, that had been enunciated in S. Santosha Nadar v. First Additional Income -tax Officer, Tuticorin and Anr. : 46 I.T.R. 411, was reviewed. The facts of this case were as follows:

(3.) THAT being so, the answer to the questions referred must be returned in the affirmative. There will be no order as to costs.