From the wealth statement it was found that the appellant had made investments for Rs.
At the instance of the appellant, the Tribunal referred the following question of law for the opinion of the High Court Whether the Income tax Officer had jurisdiction to initiate proceedings for the assessment year 1951 52 under the provisions of s. 34 1 a of the Indian Income tax Act of 1922.
This appeal is brought by special leave against the judgment of the High Court dated the 24th July, 1963.
A scrutiny of the wealth statement and the Bank account and the extensive nature of the business carried on by the appellant led the Income tax Officer to entertain a belief that the income of the year 1951 52 had been under assessed.
39,000/during the previous year which ended on the 30th June, 1950, though in respect of that previous year, the appellants income was assessed only at Rs.
Appeal by special leave from the judgment and order dated July 24, 1963 of the Mysore High Court in I.T.R.C. No.
89,002/ by his order dated the 31st March, 1960.
36,068/ .
The appellant did number dispute the quantum of the assessment but only the jurisdiction of the Income tax Officer to initiate proceedings under s. 34 1 .
Subsequently, while making assessment for the assessment year 1955 56, the appellant was asked to furnish a wealth statement which was actually filed on the 30th June, 1954.
The assessment was companypleted by the Income tax Officer on such material as was available on the 23rd February, 1955 and the income was assessed at Rs.
Gopalakrishnan, for the appellants.
36,068/ .
The appellant filed an appeal against the assessment order to the Appellate Assistant Commissioner but the appeal was dismissed, the appellant preferred a further appeal to the Income tax Appellate Tribunal, Madras Bench.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The Judgment of the Court was delivered by Ramaswami J. The appellant was carrying on business in jewellery, companyper wire and money lending.
The books of accounts of the appellant were closed on the 30th of June every year.
562 of 1965.
No return was filed by the appellant.
V. Gupte, Solicitor General, N. D. Karkhanis Sachthey, for the respondent.
For the assessment year 1951 52 for which the previous year ended on 30th June, 1950 the appellant did number companyply with the numberice issued under s. 22 2 or section 22 4 of the Income tax Act.
3 of 1963.
He accordingly issued a numberice under s. 34 1 and after examining the return made, he assessed the income of the appellant at Rs.
The Tribunal by its order dated the 31st January, 1962 over ruled the objection and dismissed the appeal.
The High Court answered the question against the appellant holding that the Income tax Officer had jurisdiction to initiate proceedings against the appellant under s. 34 1 a of the Act for the assessment year 1951 52.
