TaxTMI 
TaxTMI 
1970 (4) TMI 3
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....ome of the assessee at Rs. 35,741 accruing from the business and other sources such as sale proceeds of forest produce, fisheries, etc. Following demonetisation of high denomination notes in January, 1946, the assessee encashed such notes of the value of Rs. 19,000. The five members of the family named below also encashed notes of the value shown against each of them, the total value of the notes so encashed being Rs. 1,10,000 : Rs. 1. Hem Chandra Kar 26,000 2. Jatindra Nath Kar 24,000 3. Atul Chandra Kar 23,000 4. Narendra Nath Kar 21,000 5. Bishnuram Kar 16,000 The Income-tax Officer reopened the assessments of the Hindu undivided family and of the five members for the assessment year 1946-47. He included Rs. 19,0....
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....bunal was finally satisfied that the amounts of the high denomination notes which had been encashed in the names of the five members individually belonged to the Hindu undivided family. The following questions of law were referred by the Tribunal for the decision of the High Court : " (1) Whether, on the facts and in the circumstances of the case, the assessment made upon the assessee Hindu undivided family pursuant to a notice under section 34 of the Indian Income-tax Act issued on the 2nd February, 1955, was in accordance with law ? (2) Whether, on the facts and in the circumstances of the case, the sum of Rs. 1,10,000 was rightly included in the assessment of the Hindu undivided family ? " The High Court held that the second notice....
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....953. We are concerned with section 34(1)(a). If the present case could be brought under that provision the second notice which was issued in February, 1955, would not be barred by time. But if action could not be taken under it there could be no manner of doubt that the notices which were issued and the reassessment which was made would be beyond the period prescribed. Section 34(1)(a) is in the following terms : " 34. Income escaping assessment.--(1) If-- (a) the Income-tax Officer has reason to believe that by reason of the omission or failure on the part of an assessee to make a return of his income under section 22 for any year or to disclose fully and truly all material facts necessary for his assessment for that year, income, prof....