Late voluntary return cannot confer jurisdiction or bar reassessment; section 34 proceedings remain valid after normal assessment time expires.

A voluntary return filed after expiry of the four-year period for normal assessment did not confer jurisdiction on the assessing officer and could not be treated as a return made in pursuance of reassessment proceedings under section 34(1)(a) of the Indian Income-tax Act, 1922. The principle applicable to voluntary returns filed within limitation did not extend beyond the normal assessment period. Accordingly, the late return did not bar valid initiation of reassessment proceedings, and the reassessment made under section 34 was upheld.

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Issues: Whether a voluntary return filed after the expiry of the normal four-year period for assessment barred initiation of proceedings under section 34(1)(a) of the Indian Income-tax Act, 1922, and whether such return could invalidate the reassessment made thereunder.

Analysis: A voluntary return filed before assessment may ordinarily be acted upon where the assessing authority still has jurisdiction to complete the assessment within the ordinary limitation period. That principle, however, does not extend to a return filed after the expiry of the four-year period prescribed for a normal assessment. Once that period had expired, the Income-tax Officer could complete assessment only by assuming jurisdiction through valid proceedings under section 34. A voluntary return filed after the expiry of that period could not by itself confer jurisdiction on the Officer, nor could it be treated as a return made in pursuance of proceedings under section 34 when no such proceedings had yet been initiated. The earlier decision on voluntary returns did not govern a case where the return was filed beyond the limitation period and the assessment could not otherwise be made without recourse to reassessment provisions.

Conclusion: The voluntary return filed beyond the limitation period was non est in law and did not prevent initiation of proceedings under section 34(1)(a); the reassessment was valid.

Final Conclusion: The reference was answered against the assessee and in favour of the department, with costs awarded to the department.

Ratio Decidendi: A voluntary return filed after the expiry of the period for normal assessment does not confer jurisdiction on the assessing authority and does not bar valid initiation of reassessment proceedings under section 34.

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