1955 (6) TMI 13

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....ction of the tax. Thereupon a fresh notice of demand in respect of the sum to which the tax was reduced was issued on the 14th of October, 1949. The petitioner was still not satisfied and preferred a further appeal to the Tribunal. He was again successful and the tax assessed on him was further reduced. Thereupon, a third notice of demand in respect of the amount to which the tax was finally reduced was issued on the 31st of March, 1952. Thereafter, the Income-tax Officer took action under section 46(2) of the Act and sent a certificate to the Collector. The petitioner raised an objection that the proceedings initiated by such certificate were barred by limitation, inasmuch as according to him, the period of "one year from the last day of ....

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....uted from the last day of the financial year in which it was issued. The real point, however, is whether a second or a third notice of demand is at all permissible under section 29, even when an assessment is altered in a first or a second appeal. It appears to me that the necessity of issuing a fresh notice of demand in such circumstances is beyond argument. Suppose the amount of tax assessed by the Income-tax Officer is ₹ 2,000 and a notice of demand is issued in respect of that amount. If the assessee appeals and the assessment is reduced to say ₹ 1,500, the notice of demand already issued in respect of ₹ 2,000 will clearly cease to be appropriate. Similarly, if the assessee appeals again and the assessment is further ....