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1929 (10) TMI 5
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....ficer takes action tinder Section 34 of the Income come Tax Act for the purpose of raising the rate of tax on the ground that the rate originally fixed was too low is not the Income Tax Officer bound to re-assess the income that is, to determine afresh the correct taxable income of the assessee? 2. Section 34 refers to income escaping assessment and it provides that in such cases it may either ....
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....nder Section 34 where the rate at which the tax is levied is sought to be raised, the Income Tax Officer is bound to begin proceedings again as regards assessment and in fact proceed as if there is an inquiry in respect not only of the portion which has escaped assessment but of all the other items, also, and reference is made to Sections 14 and 16. It is argued that, when there are various heads ....
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....e raised owing to the rise in the taxable income or it may escape assessment in such a way that, if rectified, it would take the income beyond a certain rate; for example, it may give the figure to be over Rs. 40,000 in which case it will be assessed at 1 anna 6 pies instead of 1 anna and the rate will, therefore, be higher. Where the rate is in question, the enquiry need not, under s 34, go beyon....