TaxTMI 
TaxTMI 
1965 (9) TMI 4
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....of the Income-tax Act, 1961, for assessment under section 147 of the Act for the assessment year 1946-47. The petitioner says that on 24th June, 1959, a notice was issued to him by the Income-tax Officer, Sagar, under section 34 of the old Act for escaped assessment in regard to the assessment year 1946-47 ; that the proceedings on the basis of this notice were pending when the Act of 1961 came into force ; and that during the pendency of these proceedings the Income-tax Officer issued another notice to him on 14th March, 1963, under section 148 of the Act of 1961, for assessment under section 147 in respect of the assessment year 1946-47. The appellant's contention is that in view of the provisions of section 34(1A) of the Act of 1922, ....
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....22 was in force is abundantly clear from the record. For the first time, a notice for escaped assessment in regard to the assessment year 1946-47 was issued to the applicant on 14th March, 1963, and that was under section 148 of the new Act. No proceedings under section 34 of the Act of 1922 in regard to the assessment year 1946-47 were thus pending when the Act of 1961 came into force. Now, section 297 which deals with the effect of the repeal of the Indian Income-tax Act, 1922, sets out in clause (d) (ii) of sub-section (2) that : " Notwithstanding the repeal of the Indian Income-tax Act, 1922 (XI of 1922) (hereinafter referred to as the repealed Act),-- ...... (d) Where in respect of any assessment year after the year ending on ....
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.... The firmly established principle is that an amending Act or a new Act repealing an old Act enabling the income-tax department to make an assessment or a reassessment in respect of the years which were over when the amending Act or the new Act came into force should not be construed as authorising action in respect of a year for which action was already time-barred at the time when the amending or the new Act came into force, unless the statute clearly provides to the contrary. In the present case, the assessment under section 34(1A) of the Act of 1922 in respect of the assessment year 1946-47 had, no doubt, already become time-barred when the Act of 1961 came into force. But section 297(2)(d)(ii) of the new Act contains in express language....
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....ion 34(1A) in regard to the assessment year 1946-47 had already become barred by time when the Act of 1961 came into force and, therefore, no proceedings under section 147 could be initiated by a notice under section 148 must also be rejected on the ground that whereas under section 34(1A) proceedings could be initiated if the income, profits or gains which had escaped assessment for any year amounted to, or were likely to amount to, one lakh of rupees or more, under section 149 of the new Act a notice under section 148 for assessment under section 147 can be issued for the relevant assessment year where eight years but not more than sixteen years have elapsed from the end of that year if the income chargeable to tax which has escaped asses....