1931 (2) TMI 12

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.... make a return of income as therein provided for the year of assessment 1927-28 in respect of the income received in the previous year. On 15th June 1927 further notices were served upon the assessee under Sections 22(4) and 23(2) of the Act. It does not appear that any further steps were taken in the matter by the Income Tax authorities until 17th July 1930, when a further notice under Section 23....

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.... the year of assessment. (2) Whether an assessment for any year can be made after the close of the year of assessment without any valid notice being issued to an assessee under Section 34 of the Act. 2. Section 34 runs 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 Income....

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.... words "escaped assessment" in Section 34. 4. On behalf of the assessee it is contended that assessment proceedings at any rate up to the stage at which the order pi assessment is passed under Section 23(4) must be completed before the end of the year of assessment, that is, the year in ?which the tax is payable, and that otherwise the assessment proceedings ipso facto abate. In our opinion thi....

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....ake is supported by certain observations of Dawson-Miller, C.J., in Raja Rajendra Narayan Bhanja Deo of Kanika v. Commissioner of Income tax, Behar and Orissa 2 Income Tax Cases 82. His Lordship observed: It is quite possible that in certain cases no-demand could be made within the actual year for which the tax is payable. Provision is made, for disputes which may arise as to the acceptan....