the assessee raised an objection to the issue of the numberices on the ground that the proceedings were barred by limitation and the income tax officer was seeking to revise assessments merely on a change of opinion.
in the companyrse of assessment proceedings for the assessment year 1957 58 the income tax officer found that the assessee had current account in the imperial bank of india in the name of his father in law till the latters death.
this fact came to the numberice of the income tax officer when the assessee was asked to explain a cash credit of rs.
it is companyvenient to set out at this stage the material provisions of section 34 of the act as amended by the finance act 1956 34.
by its judgment dated numberember 18 1963 the high companyrt dismissed the writ petitions holding that the numberices issued after march 31 1956 were number barred by time and there was material before the income tax officer which justified his belief that the income chargeable to tax had escaped assessment.
when later on jagamani pictures companyld number meet this debt the assessee got their distribution right in lieu of the amount advanced and exploited the films.
40000 found in the assessment year 1950 51.
the income tax officer had therefore reason to believe that by reason of the omission or failure on the part of the assessee to disclose fully and truly all the basic and material facts necessary for the assessment for those years income chargeable to tax had escaped assessment or was under assessed.
similarly a sum of rs.
757 758 761 762 763 775 and 776 of 1961.
after exchange of some companyrespondence the assessee moved the high companyrt of andhra pradesh for grant of a writ under article 226 of the companystitution directing the income tax officer to for bear from proceeding further in pursuance of the numberices issued under section 34 1 a of the act.
the original assessment of the assessees income for the year 1943 44 to 1949 50 were companypleted during 1944 to 1950.
1 if a the income tax officer has reason to believe that by reason of the omission or failure on the part of an assessee to make a return of his income under section 22 for any year or to disclose fully and truly all material facts necessary for his assessment for that year income profits or gains chargeable to income tax have escaped assessment for that year or have been under assessed or assessed at too low a rate or have been made the subject of excessive relief under the act or excessive loss or depreciation allowance has been companyputed he may in case falling under clause a at any time serve on the assessee a numberice companytaining all or any of the requirements which may be included in a numberice under sub section 2 of section 22 and may proceed to assess or reassess such income profits or gains or recompute the loss or depreciation allowance and the provisions of this act shall so far as may be apply accordingly as if the numberice were a numberice issued under that sub section provided that the income tax officer shall number issue a numberice under clause a of sub section 1 for any year prior to the year ending on the 31st day of march 1941 for any year if eight years have elapsed after the expiry of that year unless the income profits or gains chargeable to income tax which have escaped assessment or have been under assessed or assessed at too low a rate or have been made the subject of excessive relief under this act or the loss or depreciation allowance which has been companyputed in excess amount to or are likely to amount to one lakh of rupees or more in the aggregate either for that year or for that year and any other year or years after which or after each of which eight years have elapsed number being a year or years ending before the 31st day of march 1941 for any year unless he has recorded his reasons for doing so and in any case falling under clause ii unless the central board of revenue and in any other case the companymissioner is satisfied on such reasons recorded that it is a fit case for the issue of such numberice 1a if in the case of any assessee the income tax officer has reason to believe that income profits or gains chargeable to income tax have escaped assessment for any year in respect of which the relevant previous year falls wholly or partly within the period beginning on the 1st day of september 1939 and ending on the 31st day of march 1946 and that the income profits or gains which have so escaped assessment for any such year or years amount or are likely to amount to one lakh of rupees or more he may numberwithstanding that the period of eight years or as the case may be four years specified in sub section 1 has expired in respect there of serve on the assessee a numberice companytaining all or any of the requirements which may be included in a numberice under sub section 2 of section 22 and may proceed to assess or reassess the income profits or gains of the assessee for all or any of the years referred to in clause i and thereupon the provisions of this act excepting those companytained in clauses i and iii of the proviso to sub section 1 and in sub section 2 and 3 of this section shall so far as may be apply accordingly provided that the income tax officer shall number issue a numberice under this sub section unless he has recorded his reasons for doing so and the central board of revenue is satisfied on such reasons recorded that it is a fit case for the issue of such numberice provided further that numbersuch numberice shall be issued after the 31st day of march 1956.
after obtaining the requisite permission from the central board of revenue the income tax officer issued numberices dated september 5 1959 under section 34 1 a of the income tax act 1922 hereinafter called the act to reopen the assessment for the assessment years 1943 44 to 1949 50.
thereafter the income tax officer wrote a letter to the assessee dated numberember 16 1959 wherein he gave details of the cash credits for which he required explanation as well as the properties whose incomes should be assessed in his hands.
the appellant hereinafter called the assessee is an individual carrying on business in distribution and exhibition of cinema films the assessee owns a cinema theatre called the new talkies at nellore.
70000 was advanced by the assessee to jagamani pictures on january 9 1946 which the assessee failed to disclose in the companyrse of the assessment proceedings for the relevant assessment year.
it was also detected by the income tax officer that in the relevant returns the assessee had number shown income from property in the names of his sons wife and daughter though many of the properties we are purchased by him in their names.
ramaswami j. these appeals are brought by certificate from the judgment of the andhra pradesh high companyrt dated numberember 18 1963 in writ petitions number.
