1971 (9) TMI 9

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....delivered by HEGDE J.--Civil Appeal No. 1172 of 1971 is by special leave and Civil Appeal No. 1990 of 1968 is by certificate. These two appeals raise the same question for decision. In a reference under section 66(2) the Tribunal referred to the High Court of Gujarat the following question : " Whether, on the facts and in the circumstances of the case, there was a material irregularity in th....

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....e the assessment the Income-tax Officer came to know that the assessee had bank accounts during the relevant accounting year. Hence, he sought to commence proceedings under section 34 of the Indian Income-tax Act, 1922. On February 28, 1958, he issued notices both under section 22(2) as well as under section 34 of the Act. In his notice under section 22(2) he mentioned that he was going to reasses....

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....(1)(a) or section 34(1)(b). The Income-tax Officer did not choose to reply to that letter but proceeded to reopen and reassess the assessee. Aggrieved by that order the assessee went up in appeal to the Appellate Assistant Commissioner. The Appellate Assistant Commissioner allowed his appeal on the ground that the section 34 notice was invalid. But on a further appeal taken by the Commissioner, th....

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....essment of the year 1949-50. Hence, in our opinion, the High Court was right in holding that the notice in question was invalid and as such the Income-tax Officer had no jurisdiction to revise the assessment of the assessee for the year 1949-50. In the result Civil Appeal No. 1172 of 1971 fails and the same is dismissed with costs. Now coming to Civil Appeal No. 1990 of 1968, the High Court ....