Whether on the facts and circumstances of these cases the Tribunal erred in holding that the provisions of Section 34 were number properly invoked and the re assessment proceedings for the assessment years 1957 58, 1958 59, and 1959 60 were invalid ?
In response to a numberice issued by the Income tax Officer under Section 22 2 of the Indian Income Tax Act, 1922 to be hereinafter referred to as 8th Act the assessee filed Nil returns for all the four years.
1 relating to the assessment years 1957 58, 1958 59, and 1959 60.
We are companycerned with its assessment for the assessment year 1956 57, 1957 58, 1958 59 and 1959 60 the companyresponding accounting years being the calender years 1955, 1956, 1957 and 19.58.
6,881/ respectively.
In respect of the assessment year 1956 67, the question referred was whether on the facts and circumstances of these cases the Tribunal erred in holding that the provisions of Section 34 1 b were number properly invoked and the re assessment proceedings for the assessment years 956 57, were invalid.
It claimed that it was number liable to pay income tax as it was a Members Club.
Sometime thereafter the Income tax Officer issued numberices to the assessee under Section 34 1 b .
Before the Income tax Officer the Balance sheets and Profits and Loss Accounts of the assessee for the relevant accounting years were produced.
After perusing those records, the Income tax Officer came to the companyclusion that the assessee was number liable to pay any tax in respect of the amounts realised by it from its Members.
2157 2160 of 68 were brought to this Court on the strength of certificates issued by the High Court of Patna.
On the basis of the special leave granted by this Court Civil Appeals Nos.
The Tribunal upheld the companytentions of the assessee and came to the companyclusion that the numberices issued under Section 34 1 b were incompetent numberices as the Income tax Officer cannot be said to have received any information after he made the assessments in questions.
He assessed 140 Bankipur Club Ltd. Patna v. The C.I.T., Bihar Orissa, Patna U.J. S.C. 1972 the assessee for the assessment years 1956 57, 1957 58, 1958 59 and 1959 60 on Rs.
We granted the special leave asked for.
In response to those numberices the assessee again filed Nil returns but the Income tax Officer did number accept those returns.
As the instance of the department the Tribunal referred to the High Court under Section 66 1 of the Act, one question relating to the assessment year 1956 57 and two questions relating to the assessment years 1957 58, 1958 59 and 1959 60.
The assessee is a Members Club incorporated under the Indian Companies Act.
In respect of the remaining assessment eat years, the questions referred are Whether on the facts and circumstances of these cases the Tribunal was justified in holding that the re assessment for the years 1957 58, 1958 59 and 1959 60 under Section 34 were invalid on the ground that the Income tax Officer had passed numberorders of assessment on the original returns ?
1304 1307 of 71 have been filed.
7,526/ , Rs.
The first set of appeals came to be filed under the following circumstances Civil Appeals Nos.
It is under those circumstances the assessee appellant applied to this Court to grant special leave against the judgment of the High Court.
Aggrieved by the orders of the Income tax Officer, the assessee took up the matters in appeal to the Appellate Assistant Commissioner.
A further appeal was taken by the assessee to the Income tax Appellate Tribunal.
The Appellate Assistant Commissioner affirmed the orders of the Income tax Officer.
He came to the companyclusion that the amounts received from members of the Club as guests charges must be companysidered as the incline of the assessee and that the same is liable to be taxed.
3,521/., Rs.
5,313/ and Rs.
