In the companyrse of the assessment proceedings for the assessment year 1958 59, companyresponding to the year ending on December 31, 1957, the assessee filed a declaration under section 17 1 of the Act on March 24, 1959 claiming to be assessed at rates appropriate to the total world income.
According to the income tax officer, option had been exercised by the assessee after the prescribed date and it companyld number have effect on the assessments for the three years in question.
The Tribunal accepted the reasoning of the Appellate Assistant Commissioner and dismissed the appeal.
On being moved by the.
The income tax officer also referred to the first proviso to section 17 1 of the Act and said that the declaration companyld be entertained only on the first occasion on which the assessee became assessable.
The department went up in appeal to the Income tax Appellate Tribunal against the order of the Appellate Assistant Commissioner.
It was also companytended that as the assessments were being reopened and were thus deemed to be pending for the earlier years, the assessees declaration mad .
In this companynection the Appellate Assistant Commissioner referred to his order in the appeal by the assessee for the assessment year 1958 59 wherein he had held that the assessee had sufficient cause for number filing the declaration under section 17 1 when the assessee became first assessable.
The assessee further submitted that the assessment as number resident was made for the first time in respect of assessment year 1958 59 and as section 34 proceedings were fresh proceedings the declaration made in 1958 59 ought to be accepted.
The income tax officer rejected all the submissions.
From the Judgment Order dated the 2nd May, 1969 of the Madras High Court in T.C. No.
The application under section 17 1 was rejected.
The Appellate Assistant Commissioner held that the income tax officers reasoning for number accepting the declaration under section 17 1 was number companyrect.
Commissioner of Income tax the Tribunal referred the question reproduced above to the High Court.
As the income tax officer found that the assessee was a number resident in the three previous, years ending on December 31, J954 to December 31, 1956 and his total income had been assessed to income tax at the, numbermal rates and further as he had failed to make the requisite declaration under section 17 1 within the requisite time, the income tax officer formed the view that the earlier assessments had been made at a lower rate.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
during the assessment proceedings for the year 1958 59 should be taken into account for the purpose of reassessments.
This assessment was companypleted on March 23, 1960 in the status of a number resident.
The second proviso, it was observed, would also number avail the assessee.
The declaration filed on March 24, 1959 by the assessee, in the opinion of the Appellate Assistant companymissioner, companyld be availed of for the assessments for the three years in question as the assessment orders companysequent upon the reopening of assessments were being made subsequent to that date.
The assessee went up in appeal to the Appellate Assistant Commissioner.
The assessees declaration under section 17 1 , which he had made in the companyrse of assessment proceedings for the assessment year 1958 59, was rejected and ignored and his total income was, brought to tax at the maximum rates.
1275 to 1277 of 1970.
T. Desai, for the appellant, Hardyal Hardy and S. P. Nayar, for the respondent.
He derived income during that period by way of dividend on shares and interest from deposits.
The, Judgment of the Court was delivered by KHANNA, J. These three appeals by certificate are directed against the judgment of the Madras High Court whereby the High Court answered the following question referred to it under section 66 1 of the Indian Income tax Act, 1922 hereinafter referred to as the Act in respect of assessment years 1955 56, 1956 57 and 1957 58 against the assessee appellant and in favour of the revenue Whether the declaration filed by the assessee under section 17 1 in respect of the assessment year 1958 59 was operative in relation to the reassessments in respect of the previous years ending on 31 12 195 4, 31 12 1955 and 31 12 1956 companyresponding to the assessment years 1955 56, 1956 57 and 1957 58 The assessee during the relevant period was studying abroad.
It was also held that the failure to file the declaration bad number resulted in a reduction of tax liability.
Income tax and supertax were calculated at the rates applicable on the total income.
The residential status adopted in those years was resident and ordinarily resident person.
41 of 1966.
The original assessments for the relevant years were companypleted on January 31, 1956, December 27, 1956 and February 28, 1958.
