TaxTMI 
TaxTMI 
1967 (7) TMI 56
X X X X Extracts X X X X
X X X X Extracts X X X X
....ating to the money-lending business, one of Rs. 6,000 made on March 6, 1949, and the other of Rs. 19,000 made on March 11, 1949. The assessee explained that the sums credited represented moneys withdrawn previously in 1930 and 1937, but the Income-tax Officer did not accept the explanation. He added the amount of Rs. 25,000, as income from undisclosed sources in the assessment for the assessment year 1950-51. Against the addition the assessee appealed unsuccessfully to the Appellate Assistant Commissioner. In second appeal before the Income-tax Appellate Tribunal, there was a difference of opinion between the Accountant Member and the Judicial Member, who, while agreeing that the amount represented income taxable in the hands of the assesse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e facts and in the circumstances of the case, and having regard to annexure ' A ', any provision of limitation applies to the reassessment made on February 6, 1959? 3. If the answer to the above is in the affirmative, whether the said reassessment in within time?" Mr. P. N. Pachauri, learned counsel for the assessee, has not made any submission in respeect of the first question, and we shall assume for the purposes of this case that the amount of Rs. 25,000 represents income which has escaped assessment for the assessment year 1949-50 within the meaning of section 34. Mr. Pachuri, however, contends that the second and third question should be answered in favour of the assessee. In order to appreciate the rival contentions of the parti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssessment year 1950-51. The Tribunal was concerned there with a proceeding for the assessment year 1950-51, and no finding or direction rendered therein could be considered as a finding or direction in consequence of which, or to give effect to which, a reassessment for the assessment year 1949-50 could be made. The provisions of the second proviso to section 34(3) are not attracted, and, in our opinion, the Tribunal plainly erred in holding, by reference to that proviso, that the bar of limitation could not be invoked by the assessee against the reassessment under section 34. That a finding or direction rendered by the Tribunal in a proceeding for one assessment year cannot be employed by reference to that proviso for ignoring the bar of l....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t should be held that there is no period of limitation for making the reassessment. Mr. Gopal Behari points out that the language of the second question is sufficiently wide to include within its scope the point raised by him. We find considerable difficulty in accepting the submission. The terms in which the second question has been couched clearly confines it to the facts and circumstances of the case and the three orders of the Tribunal on the appeal for the assessment year 1950-51. The three orders relate to the question whether the amount of Rs. 25,000 was not liable to tax for the assessment year 1950-51. That was the only question upon which the Accountant Member and the Judicial Member of the Tribunal found themselves in disagreemen....