Retrospective validation of reassessment proceedings removes the jurisdictional objection under section 64 of the Income-tax Act, 1922

The Governor-General's Ordinance No. IX of 1939 retrospectively validated reassessment proceedings for the 1937-38 assessment year by deeming sections 64(1) and 64(2) of the Income-tax Act, 1922 never to have applied in the covered class of cases. It also protected assessments and pre-ordinance proceedings taken in accordance with section 2 from invalidity on the ground of section 64. The objection that the reassessment had been initiated by an Income-tax Officer lacking jurisdiction therefore failed, and the appointment of the Special Provincial Circle officer was not treated as invalid under section 5(4).

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Issues: Whether the Governor-General's Ordinance No. IX of 1939 validated the reassessment proceedings for the assessment year 1937-38 notwithstanding the objection that they were initiated by an Income-tax Officer lacking jurisdiction under section 64 of the Income-tax Act, 1922.

Analysis: The reassessment had been commenced and continued pursuant to orders made by the income-tax authorities, and the only infirmity found in the proceedings was the objection arising under section 64 of the Income-tax Act, 1922. The Ordinance was retrospective and expressly provided that sub-sections (1) and (2) of section 64 should be deemed never to have applied in the relevant class of cases. It further declared that assessments made in accordance with section 2, and proceedings taken for that purpose before the commencement of the Ordinance, should not be invalid by reason of section 64. The appointment of the Special Provincial Circle officer was not held to be invalid under section 5(4), and the earlier jurisdictional objection was removed by the validating ordinance.

Conclusion: The Ordinance validated the reassessment proceedings, and the objection that the proceedings were vitiated for want of jurisdiction under section 64 failed.

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