1960 (2) TMI 56

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....onse to a notice issued under section 34 of the Act for the assessment year 1944-45, the assessee filed a return on March 29, 1946. In that return, he showed the whole period October 1, 1943, to September 30, 1944, as the "previous year" that is, in relation to the assessment year 1944-45, and in that return he claimed he had sustained a loss. On the same date, March 29, 1946, the assessee also filed a return for 1945-46 in which he treated the period October 1, 1944 to September 30,1945, as the previous year in relation to the assessment year 1945-46. For that period, October 1, 1944, to September 30, 1945, the assessee showed no income. It should be remembered that the toddy lease expired on September 30, 1944. Subsequently, the assessee ....

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.... "1.Whether on the facts and in the circumstances of the case the assessment made on the assessee is valid in law, 2.Whether on the facts and in the circumstances of the case the Income-tax Officer was correct in adopting the period Ist October, 1943, to 30th September, 1944, as the previous year for the assessment year 1945-46 in view of the provisions of section 2(xi)( a) of the Act." The second question can arise for consideration only if the first question is answered against the assessee and in favour of the Department, that is, only if it is held that the initiation of proceeding for the assessment year 1945-46 with notice under section 34 of the Act was valid. Factually the position was that in relation to 1945-....