1930 (5) TMI 12

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....her. On 2nd February 1927 the Income Tax officer made an assessment under Section 23(4), Income Tax Act, acting under that section because no return of income had been filed. The assessment was on an income estimated at Rs. 1,17,600 and the minor was assessed to Income Tax and super-tax, the assessment being based on the income estimated for 1925-26. On 11th March 1928 the Income Tax officer came ....

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....he Assistant Commissioner was precluded from granting relief to the assessee against the original assessment under Section 23(4). This is the main point in the case. Now Section 34 under which the second notice was issued states as follows: If for any reason income, profits or gains chargeable to Income Tax has escaped assessment in any year, or has been assessed at too low a rate, the In....

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....r part of the section. Accordingly in a proceeding under Section 34 the Income Tax officer and after him the Assistant Commissioner are only dealing with the extra income which has not been assessed to Income Tax. No jurisdiction is given to either of the these officers by Section 34 to make a now assessment for the purpose of taxing the whole of that assessment under the Income Tax Act. According....

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.... showing that the assessment under Section 23(4) was too much can relief be granted to the assessee? 5. As already stated we consider that this question must be answered in the negative. 6. A further question was put forward by the assessee as to whether the Commissioner could exercise his discretion in his favour under Section 33 of the Act. The question of the exercise of his discretion by....