Case: Income Tax Officer, Special Investigation Circle, Indore Vs. Rustomji

2. The petitioner is a resident of Mhow which was formerly a part of the erstwhile Holkar State. He started some business in British India in or about the year 1934 and acquired a textile mill known as the New Premier Mills, Bombay. In 1939 he purchased a cotton ginning and pressing factory at Khamgaon. For the assessment years4 and6 he was assessed tox as at by thex Officer, Nagpur. For the two assessment years, and6 he was also assessed at Mhow as a resident and ordinarily resident in respect of the properties in Mhow. The assessment orders for each year of assessment in properties in Mhow. The assessment orders for each year of assessment in question were made on various dates. On March 23, 1962 thex Officer concerned served six notices under Section 34 of the Act, in respect of certain income alleged to have escaped assessment. The assessee objected to the jurisdiction of thex Officer to issue these notices after March 31, 1956 in view of the limit of time provided by Section) of the Act. Thex Officer issued fresh notices under Section 22(4) of the Act and called upon the assessee to comply with the notices issued under Section 34.

Court's reasoning:
4. The point whether a notice could be issued under Section 34(1)(a) of the Act as amended by the Finance Act of 1956 after March 31, 1956 in respect of any assessment year the relevant previous year of which fell wholly or partly within the period September 1, 1939 to March 31, 1946 stands concluded by the decision of this Court in Commissioner of Income Tax, Patiala v. Shahzada Nand and Sons and Others. It was held that a notice could be validly issued under Section 34(1)(a) after March 31, 1956 in respect of the aforesaid assessment years.