Retrospective tax amendment can justify reopening a completed assessment when it creates escaped income under reassessment law.

A retrospective amendment to section 4(3)(i) of the Indian Income-tax Act, 1922 can constitute "information" for reopening a completed assessment under section 34(1)(b). Where the amending Act is expressly made effective from an earlier date, the Income-tax Officer may treat the resulting taxability as escaped income and form the requisite belief for reassessment, even though the original assessment was already concluded before the amendment was enacted. The reopening notice for assessment year 1952-53 was therefore held valid, and the reassessment was sustained in favour of the Revenue.

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Issues: Whether a notice under section 34(1)(b) could validly be issued to reopen the completed assessment for 1952-53 on the basis of a retrospective amendment to section 4(3)(i) of the Indian Income-tax Act, 1922.

Analysis: The assessment for 1952-53 had been completed before the amending Act of 1953 was enacted, but the amendment was expressly given retrospective effect from 1 April 1952. Knowledge of the amendment constituted information within the meaning of section 34(1)(b). On receiving that information, the Income-tax Officer had reason to believe that income chargeable to tax had escaped assessment. The fact that the original assessment had already been completed did not bar reopening where the escaped income became assessable by reason of a retrospective statutory change.

Conclusion: The notice under section 34(1)(b) was validly issued and the reassessment for 1952-53 was sustainable. The answer was in favour of the Revenue.

Ratio Decidendi: A retrospective amendment that makes income taxable can furnish information for reopening an assessment under section 34(1)(b), even if the original assessment was completed before the amendment was enacted.

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