FIRM JITANRAM NIRMALRAM Vs. COMMR OF INCOME TAX

JUDGEMENT

(1.) This reference is made by the Income-tax Appellate Tribunal under Section 66(2) of the Indian Income-tax Act.

(2.) The applicant was assessed under the Excess Profits Tax Act in respect of the chargeable accounting periods corresponding to 1941-12 and 1942-1943. He subsequently filed an application before the Commissioner of Income-tax under Section 20 of the Excess Profits Tax Act for re-calculation of the amounts. The Commissioner asked for a report from the Income-tax Officer who made recomputation and communicated the result to the applicant on 18th July 1944. The applicant made certain suggestions on 24th July 1944. Three days after the Income-tax Officer issued notice under Section 34 of the Income-tax Act which is to the following effect:

(3.) Pursuant to an order of the High Court under Section 68(2) of the Income-tax Act, the Appellate Tribunal has propounded the following question for determination of the High Court: "Whether in the circumstances of the case, the proceeding under Section 34, income-tax Act, was validly started?"