Commencement of assessment proceedings depends on the first individual notice or return, not a general public notice, for court-fees purposes.

Assessment proceedings under the Income-tax Act, 1922 begin when an assessee first comes before the authority by filing a return, or when the Income-tax Officer issues an individual notice under section 22(2) requiring a return. A general public notice under section 22(1) merely sets the process in motion and does not commence proceedings against a particular assessee, while a later notice under section 23(2) falls within proceedings already begun. On this footing, the relevant proceedings were treated as having started on the section 22(2) notice date, so the old Court Fees Act applied.

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Issues: Whether assessment proceedings under the Income-tax Act, 1922 are initiated for the purpose of applying the old or new court-fees law when the assessee files a return or when the Income-tax Officer issues an individual notice to file a return, and whether a public notice or a later notice during inquiry marks the commencement of such proceedings.

Analysis: The governing principle was that proceedings commence when a party first comes before the appropriate authority for adjudication, or when the authority calls upon the person to appear for inquiry. In the tax context, that stage is reached either when the assessee voluntarily files a return or when the Income-tax Officer issues an individual notice under section 22(2) requiring a return. A general public notice under section 22(1) merely sets the machinery in motion and does not start proceedings against any individual assessee. A notice under section 23(2) is issued later, after the return has been filed, and is therefore within proceedings already commenced.

Conclusion: The assessment proceedings were initiated on the date of the notice under section 22(2), which was before the new Court Fees Act came into force, so the reference was governed by the old Court Fees Act and the contention against the assessee failed.

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