1965 (2) TMI 1

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....s or making any orders for assessment in pursuance thereof. On 3rd of September, 1951, the petitioner's mother filed a voluntary return for the assessment year 1948-49 with the respondents. In the said return she is alleged to have indicated that she was a partner in a firm with annas 0-7-0 share. A notice under section 23(2) of the Income-tax Act, 1922, was issued on the 20th December, 1951, on the basis of the aforesaid return and it is alleged that the said notice, which required the production of certain account books, was complied with by the petitioner's mother. On that day there is a note in the order-sheet pointing out that a credit of Rs. 50,000 appears in the books of the firm and notice under section 34 of the Act should be is....

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....e original return dated the 3rd September, 1951, as the statutory limit of 4 years prescribed under section 34(3) of the said Act had expired. The respondent-Income-tax Officer, however, issued another notice on the 2nd October, 1964, and then a third notice dated the 24th December, 1964, under section 23(2) of the Act. By the last mentioned notice the petitioner was called upon to appear before the Income-tax Officer on 14th January, 1965. The petitioner then filed a writ petition which was admitted on the 13th January, 1965. Mr. S. K. Aiyar, learned counsel for the petitioner, submits that the time-limit for making an order of assessment is 4 years from the end of the year in which the income, profits and gains were first assessable. A....

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....t, that the assessee had concealed the particulars of his income or deliberately furnished inaccurate particulars of such income. The position would, therefore, be that the Income-tax Officer is entitled to proceed with making enquiries and issuing notice under section 23(2) and he is to consider the question of limitation at the time of making the assessment order. If, at the time of making the order, he finds that the assessee had concealed the particulars of his income or deliberately furnished inaccurate particulars of such income, then he would be entitled to make the assessment order without any bar of limitation under section 34(3) of the Act. If, on the other hand, the Income-tax Officer comes to the conclusion that there has been n....