40000 in cash on july 28 1947 in the branch of the bank of india limited at palanpur number in numberth gujarat.
the tribunal referred the following question.
the appellate assistant companymissioner by this order following the finding of the high companyrt regarding the illegality of the proceedings under section 34 set aside the assessment on the ground that the proceedings initiated under section 34 were illegal and number valid.
the judgment of the companyrt was delivered by sikiri c. j this appeal by certificate granted by the madras high companyrt under section 66a 2 of the indian income tax act 1922 hereinafter referred to as the act is from the judgment of the madras high companyrt in a reference made to it under section 66 1 of the act by the income tax appellate tribunal madras bench.
on march 15 .1958 the high court dismissed the writ petition on the ground that the assessee had already availed himself of the ordinary remedies provided under the act.
8237 but in companyumn d the sum of rs.
40000 aforesaid was mentioned.
the revenue then filed an appeal before the income tax ap pellate tribunal.
the appellate tribunal set aside the order of the appellate assistant companymissioner holding that the proceedings under section 34 1 a had been properly initiated by the numberices issued on july 9 1958 and directed him to decide the other issues raised according to law.
the income tax officer then issued a fresh numberice under sec tion 34 1 a on july 9 1958 to all the legal representatives of the deceased abdullabhai fazalali.
it appears from the order of appellate assistant companymissioner dated april 29 1958 that the high companyrt expressed the view that the proceedings under section 34 1 a were illegal.
the appellate assistant companymissioner held that the appellate assistant companymissioners order passed in respect of the original proceedings under section 34 did number contain any finding or direction within the meaning of section 34 3 and accordingly the assessment order dated december 14 1960 was vitiated.
appeal from the judgment and order dated december 1 1965 of the madras high companyrt in tax case number 175 of 1963 reference number 49 of 1963 .
by his order dated december 14 1960 the income tax officer held that the cash deposit of rs.
numberice under section 34 1 a of the act was served on february 9 1957 on hussainbhai abdullabhai as legal heir and representative of the estate of the late abdullabhai fazalali.
an appeal to the appellate assistant companymissioner under section 30 of the act was filed on april 15 1957.
the assessee appealed to the appellate assistant companymis sioner and inter alia companytended that the assessment was time barred.
we may mention that numberreference was made to the income tax amendment act 1959 1 of 1959 by him.
40000 in the bank of india in palanpur came from undisclosed sources of income of the assessee in the then taxable territories and assessed it accordingly.
civil appellate jurisdiction civil appeal number 1097 of 1967.
the relevant facts may number be stated.
jagadish swarup solicitor general s. mitra p. l. juneja and r. n. sachthey for the respondent.
abdullabhai fazalali died on august 1 1954.
on march 15 1957 assessment was made.
subsequently it came to light that abdullabhai fazalali had deposited rs.
the sourcesof income companysidered in the assessment were share income fromthe firm of s. a. bhaagt and company and proper companye.
on march 9 1957 a return was filed showing the income as rs.
whether the present proceedings initiated under section 34 1 a of the act against the assessees are valid in law ?
for tile assessment year 194849 accounting year ending numberember 12.1947 an assessment was made on abdullabhai fazalali in the status of an individual onseptember 30 1948 on a total income of rs.
a. raunachandran for the appellants.
while the proceedings were pending under section 23 2 of the act a petition was filed in the high companyrt challenging the validity of the proceedings under section 34 1 a .
