Broad meaning of "assessment" under tax law extended a declaration to reassessment proceedings for earlier years.

A declaration under section 17(1) of the Indian Income-tax Act, 1922, filed in assessment proceedings for one year was held to extend to reassessment proceedings for earlier years under section 34. The court construed the words "all assessments thereafter" in the second proviso to section 17(1) broadly, holding that "assessment" included reassessment where the statutory scheme showed no basis for a narrower reading. It rejected a construction that would create different treatment between escaped-assessment cases and other reopenings, and found the assessee entitled to the benefit of the declaration in the reopened proceedings.

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Issues: Whether a declaration filed under section 17(1) of the Indian Income-tax Act, 1922, in the course of assessment proceedings for one year could operate for reassessment proceedings under section 34 for earlier years, and whether the expression "all assessments thereafter" included such reassessments.

Analysis: The declaration was allowed after the expiry of the prescribed period, and the question turned on the scope of the words "all assessments thereafter" in the second proviso to section 17(1). The expression was held to be of wide amplitude and not confined to original assessments for subsequent years. The word "assessment" in that proviso was construed in a comprehensive sense so as to include reassessment under section 34, because the statutory scheme and context showed no basis for restricting it to original assessments only. A contrary view would create anomalies by giving different treatment to escaped-assessment cases and other forms of reopening under section 34, and the Act itself showed that the legislature used express language where reassessment was meant to be excluded.

Conclusion: The declaration operated in relation to the reassessments, and the question referred was answered in the affirmative in favour of the assessee and against the revenue.

Final Conclusion: The reassessment orders were brought within the scope of the valid declaration, so the assessee obtained the benefit of section 17(1) for the reopened proceedings.

Ratio Decidendi: In construing a taxing statute, the word "assessment" may include reassessment where the context and scheme of the provision show that the legislature intended a comprehensive meaning.

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