1975 (4) TMI 20
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....ion 147(a) of the Income-tax Act, 1961, for the assessment year 1959-60, is legal and valid ? In R.C. No. 54/1973, the question referred is : "Whether, on the facts and in the circumstances of the case, the assessment made on Smt. Rukmini Bai, under section 143(3) read with section 147(a) of the Income-tax Act, 1961, for the assessment year 1959-60, was illegal by reason of the fact that the notice under section 147 although issued prior to 31st March, 1964, was served after the 31st March, 1964 ?" In R.C. No. 53/1973, the facts are as follows : The notice under section 148 of the Income-tax Act, 1961 (hereinafter called "the Act"), was put up to the Income-tax Officer on March 17, 1964, and it was signed by him on March 18, 1964. I....
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.... Chunilal, Income-tax Officer in order to appreciate this contention, it is necessary to notice the provisions of sections 147, 148, 149 and 151 of the Act. These provisions are similar to the provisions of section 34 of the old Act, except that the provisions of section 34 have been split up into various sections in the new Act. Section 149 replaces the proviso to section 34 of the old Act. Construing the provisions of section 34 of the old Act, it was consistently held that the words "issued" and "served" were interchangeable, that not only the notice should be issued within the period prescribed but it should be served within the same period for assuming jurisdiction under section 34 for reopening the assessment or taking any other proce....
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....as well as serving the same on the assessee within the said period. In Banarsi Debi v. Income-tax Officer, their Lordships of the Supreme Court held as follows : The clear intention of the legislature in enacting section 4 of the Indian Income-tax (Amendment) Act, 1959, is to save the validity of a notice issued under section 34(1)(a) of the Indian Income-tax Act, 1922, as well as the assessment from an attack on the ground that the notice was given beyond the prescribed period. That intention is effectuated by giving to the expression 'issued' the wider of its accepted meanings. The expression 'issued' takes in the entire process of sending the notice as well as the service thereof. Therefore, a notice under section 34(1)(a) issued wit....