Reassessment cannot override a subsisting family-disruption order; section 25A remains operative until lawfully set aside.

Section 34 of the Indian Income-tax Act, 1922 conferred power to reassess escaped income, but it did not authorise the Income-tax Officer to review or nullify a subsisting order under section 25A recognising the disruption of a Hindu undivided family. Such an order remained operative for subsequent years until it was lawfully set aside, ordinarily under section 33B, and could not be ignored at will without undermining its finality. Earlier cases cited were distinguished because they did not address the effect of a continuing section 25A order on reassessment proceedings. The officer therefore had no jurisdiction under section 34 to disregard the section 25A order.

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Issues: Whether the Income-tax Officer could initiate proceedings under section 34 of the Indian Income-tax Act, 1922, and disregard an existing order under section 25A recognising the disruption of the Hindu undivided family.

Analysis: Section 34 was held to confer power to reassess escaped income, but not a general power to review or nullify an order made under section 25A. An order under section 25A was treated as effective for subsequent years until it was set aside in accordance with law, ordinarily by resort to section 33B. Permitting the Income-tax Officer to ignore such an order at will would produce anomalous results and deprive the order of finality. The earlier authorities cited did not govern the question because they concerned different facts and did not decide the effect of a subsisting section 25A order on proceedings under section 34.

Conclusion: The Income-tax Officer had no jurisdiction under section 34 to ignore or nullify the subsisting section 25A order, and the question was answered in the negative, in favour of the assessee.

Ratio Decidendi: A reassessment provision cannot be used as a substitute for review of a subsisting order under section 25A, and such an order remains operative for later years until lawfully set aside.

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