Second section 23A order invalid where the Act gave no express power for repeated action under the same provision.

Section 23A of the Indian Income-tax Act, 1922 was treated as a penal provision authorising the Income-tax Officer to make only one order, and the absence of any express power for successive action meant a second order could not be implied. Because the statute contained no reopening mechanism comparable to section 34, repeated proceedings under section 23A were not intended. Any prejudice to the Revenue from an earlier section 23A order had to be addressed, if at all, through the Commissioner's revisionary power under section 33B. The second section 23A order was therefore held unsustainable, and the assessee succeeded.

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Issues: Whether the Income-tax Officer was justified in passing a second order under section 23A of the Indian Income-tax Act, 1922 after the assessee's assessment had been finally adjusted in appeal.

Analysis: Section 23A was treated as a penal provision and was read as authorising the Income-tax Officer to make only one order thereunder. The absence of any express provision in section 23A permitting successive proceedings, unlike the express reopening mechanism found in section 34, indicated that repeated action under the same section was not intended. Any prejudice to the Revenue arising from an order under section 23A could be addressed only by the Commissioner under section 33B, not by the Income-tax Officer by issuing another order under the same provision.

Conclusion: The second order under section 23A was not sustainable, and the question was answered in the affirmative in favour of the assessee.

Final Conclusion: The reference was answered against the Revenue and the assessee succeeded on the validity of the second section 23A order.

Ratio Decidendi: Where a taxing provision authorises the Income-tax Officer to make an order and contains no express power for repeated action, a second order cannot be sustained by implication; the statute must be applied according to its express terms.

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