Voluntary return under the 1922 Act prevents escaped assessment and cannot support a section 34 notice when ignored without decision.

A voluntarily filed return under section 22(3) of the Income-tax Act, 1922, including a belated loss return, is still a valid return for section 34 purposes. Where the assessee has already filed such a return and the Income-tax Officer merely ignores it without deciding it, the case is not one of escaped assessment arising from omission or failure by the assessee. The fact that the return was not eligible for carry forward under section 22(2A) did not make it non-existent. The notice under section 34 relating to the assessment year 1952-53 was therefore invalid and was quashed.

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Issues: Whether a notice under section 34 of the Income-tax Act, 1922 was valid where the assessee had voluntarily filed a return under section 22(3) before assessment and the return had been ignored without any decision.

Analysis: A return filed voluntarily before assessment falls within section 22(3), even if it is a loss return and even if it is filed belatedly. The requirement of section 34 is attracted only where there has been omission or failure by the assessee leading to escaped assessment. Where the assessee has already filed a return and the Income-tax Officer has merely ignored it without passing any order on it, the case is not one of escaped assessment. The fact that the return was not one qualifying for carry forward under section 22(2A) did not justify treating it as non-existent for the purpose of section 34.

Conclusion: The notice under section 34, insofar as it related to the assessment year 1952-53, was invalid and was quashed.

Ratio Decidendi: A voluntarily filed return under section 22(3), if ignored by the department without adjudication, negatives the existence of escaped assessment and cannot sustain a notice under section 34.

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