1965 (12) TMI 139

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Revenue. This amount had not been included in the return. On 9-2-1957, notice under S. 34(1)(a) of the Act was issued to one Hussain Bhai Abdullabhai, a son by the first wife of Fazallali. He filed a return on 9-3-1957 showing this amount in the D section. The validity of this notice was challenged in this court by W.P. 231 of 1957 under Art. 226 of the Constitution. Since no stay of further proceedings in assessment was granted, the assessment was completed on 15-3-1957, under S. 34(1)(a). On 15-3-1958, the writ petition was dismissed on the ground that the petitioner had an alternative remedy. In the meantime he had filed an appeal on 15-4-1957 which was allowed on 24-4-1958 on the ground that the notice issued under S. 34(1)(a) was inva....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eing put aside, fresh notice learned counsel for the assessees contends that fresh notice served under S. 34(1)(a) beyond eight years of the assessment order is barred by time. That will be so but for any other saving provision. (3) For the Revenue the contention is that Section 4 of Central Act I of 1959 saved the fresh notice from the bar of limitation. On the other hand, for the assessees it is said that this proviso does not have that effect. We have to solve this controversy on a construction of S. 4. That section reads :- "No notice issued under clause (a) of sub section(1) of section 34 of the principle Act at any time before the commencement of this Act and no assessment, re-assessment or settlement made or other proceeding ta....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uestioned in any court of law on the ground that the time within which they should have been issued under S. 34(I)(a) as in force before its amendment by clause (a) of S. 18 of the Finance Act 1956 had expired. (4) But it is contended for the assessees that the latter part of the section confined the saving only to notices which were issued prior to the Finance Act 1956 and it will not cover notice issued, or in this case, subsequent to that date, We are unable to accept this construction of the section. It seems to us that to adopt that construction will involve inconsistency between the earlier and latter parts of the section. When the section begins by making reference to notices issued before the commencement of the Act, that is to s....