1935 (12) TMI 28

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....ome Tax Officer to reassess income, profits or gains under any source which he finds to have not escapee assessment in any year; (3) Whether the supplementary assessment levied in this case by the Income Tax Officer on 12th October 1932 is correct. The Commissioner was of opinion that the answer to questions (1) and (3) should be in the affirmative and to question (2) in the negative. He said: "The assessees' contention is that as income from interest was really only ₹ 55,211 and not ₹ 85,000 as originally estimated by the Income Tax Officer he should have reassessed it at the former figure. Section 34, however, clearly empowers an Income Tax Officer to reassess only income which has escaped assessment, and I submit t....

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.... reassess only income which has escaped assessment, and I submit that it does not empower him to revise his own decision and reduce the assessment of "in come escaping assessment." As regards income which has been over-assessed Sections 31, 32 and 33 of the Act contain provisions to enable an assessee to obtain redress." BEAUMONT, C.J.--In this case the assesses were assessed under Section 23(4) of the Income Tax Act and in that assessment interest on securities were treated as ₹ 31 thousand and odd, dividends at ₹ 44 thousand odd and "other sources- Interest" at ₹ 85,000. Subsequently it transpired that interest on securities should have been ₹ 58 thousand odd instead of ₹ 31 thousand....