Before the Income tax Appellate Tribunal two points were raised.
In pursuance of the order dated the 8th February, 1944, quoted above, a fresh numberice under section 34 of the Act was issued to the appellant on the, 12th February, 1944.
1 Whether the numberice dated the 12th February, 1944, under section 34 of the Act was validly issued.
Appeal from the Judgment and Decree dated the 14th day of March 1951 of the High Court of Judicature at Patna in J.C. No.
by an order dated the 22nd December, 1939, which was reduced on appeal by Rs.
31,315.
Both the points were decided against the assessee.
The income of the assessee company was thereupon determined at a sum of Rs.
On a reference by the Tribunal at the instance of the Income tax authorities, the High Court of Patna agreed with this view and pronounced on the 30th September, 1943, its judgment companyfirming the setting aside of the assessment.
4,86,351, which on appeal to the Assistant Commissioner, was reduced by Rs.
11,187.
That assessment was set aside by the Income Tax Appellate Tribunal on the 28th March, 1942, on the ground that the Indian Finance Act of 1939 was number in force during the assessment year 1939 40 in Chota Nagpur, which was a partially excluded area.
4,04,618 related to two items of cash credits appearing in the name of the partners of the Company which in the absence of any satisfactory explanation, was treated by the Income tax authorities as secreted profits of the Company.
K. Daphtary, Solicitor General for India Porus A. Mehta and P.O. Gokhale, with him , for the respondent.
By this Regulation, the Indian Finance Act of 1939 along with Finance Acts of other years with which we are number companycerned was brought into force in Chota Nagpur retrospectively as from the 30th March 1939.
On the 8th February, 1944, the Income tax Officer passed an order as follows Due to recent judgment of the High Court the assessment under section 23 3 stands cancelled and with it the numberice under section 34 issued in this case becomes ineffective and is withdrawn.
1,09,200 for the same year 1939 40.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The relevant portion of the Regulation was in the following terms.
These proceedings were initiated on a numberice issued to the assessee under section 34 of the Indian Income tax Act, 1922, Act XI of 1922 hereinafter referred to as the Act .
The Indian Finance Act, 1939, shall be deemed to have companye into force in the area to which this Regulation extends on the 30th day of March, 1939.
38 of 1954.
The appellant had previously been assessed to tax on an income of Rs.
Meanwhile, the Governor of Bihar promulgated Bihar Regulation IV of 1942, Which was assented to by the Governor General on the 30th June, 1942.
The assessment in question is for the year 1939 40 and the accounting year is the calendar year 1938.
Assessee derives income from mica mining and dealing, moneylending, mining rents and number agricultural sources of zamindary, and this has escaped assessment in its entirety.
Out of this amount a sum of Rs.
April 18.
Mahabir Prasad, Advocate General for the State of Bihar R. Bahadur and S. P. Varma, with him , for the appellant.
It is the applicability of this section to the facts of this case that is the sole matter for companysideration in this appeal.
The circumstances under which the above mentioned numberice under section 34 was issued are as follows.
The assessee by name Chatturam Horilram Ltd., who is the appellant before us, is a private limited companypany carrying on in Chota Nagpur the business of exporting mica for sale to foreign companyntries.
The Judgment of the Court was delivered by JAGANNADHADAS J. This is an appeal by the assessee on leave granted under section 66 A of the Indian Income Tax Act.
230 of 1949.
