Disjunctive interpretation of assessment cancellation provisions allows relief on one sufficient-cause ground without meeting every notice default requirement.

Section 27 of the Income-tax Act, 1922 is disjunctive, so cancellation of an assessment made under section 23(4) can be granted when the assessee shows sufficient cause for non-compliance with the notice under section 22(4), even if no sufficient cause is shown for failure to comply with the notice under section 22(2). The statutory grounds are alternative and not cumulative, and the assessee need not satisfy every ground mentioned in the provision. On that construction, sufficient cause for default under section 22(4) is enough to trigger cancellation of the assessment and a fresh assessment.

---

---

Issues: Whether, under section 27 of the Income-tax Act, 1922, cancellation of an assessment made under section 23(4) is mandatory when the assessee shows sufficient cause for non-compliance with the notice under section 22(4), although no sufficient cause is shown for non-compliance with the notice under section 22(2).

Analysis: Section 27 provides for cancellation of the assessment where the assessee satisfies the Income-tax Officer on any one of the stated grounds. The language is disjunctive and not cumulative. The presence of the word "or" shows that the assessee need not establish sufficient cause for every notice referred to in the section. If sufficient cause is shown for non-compliance with the notice under section 22(4), the statutory condition is met, even though there was no sufficient cause for failure to comply with the notice under section 22(2).

Conclusion: The assessee was entitled to cancellation of the assessment and to a fresh assessment once sufficient cause for non-compliance with section 22(4) was found, notwithstanding the absence of sufficient cause for non-compliance with section 22(2).

---