Commissioner Of Income Tax, Patiala v. The Ambala Flour Mills

COMMISSIONER OF INCOME TAX, PATIALA THE AMBALA FLOUR MILLS April 27, 1970 [J. C. SHAH, K. S. HEGDE AND A. N. GROVER, JJ.) Income-tax Act, 1922, ss. 31 and 34(3) & 66-Assessment.by Income-tax Officer in statU!I of 'association of individuals' of which D a member-Appeflate Assistant. Commissioner directing ,assessn1ent to be 1nade on famfly of D-Appeals by D before Tribunal whether maintainable-D whet'ier a stranger to proceedings-High Court in reference whether can modify directions given by Appellate Assistant Commissioner-'-Referenc4 to the High Court of a question no~ raised before 'fribunal not competent. ,assessn1ent to be 1nade on maintainable-D D. B and J were partners in a firm which carried on the business entitl-ed the Ambala Flour Mills. On April 29, 1948 J fil<d a suit for the dissolution of the firm. The litigation ended with the judgment df the Panjab High Court delivered on September 25, 1951. According to the judgment the partnership stood dissolved with effect fr<'m the date of the filing of the suit, but since the firm had continued to use J's share in the property of the firm after that date he was held entitled to a ~orrespond· ing share in the profits of the firm after that date, or at his option, to interest at six per cent on the value of his share in the property of the firm. During the pendency of the suit B also served his connection with the business which was. thereafter carried on by D alone. In the assess-ment year 1950-H D flied three returns of income : (i) on 4-10-50 in the status of a firm; (ii) on 14-4-51 in the status of an individual; and (iii) on 1-7-51 in the status of a firm consisting of J and D partners. For the assessment year 1951-52 D filed a return in the status of an unregister-ed firm. For the assessment" year 1952-53 D submitted a return in the status of a Hindu Undivided Family. The Income-tax Officer assessed the Ambala Flour Mills in the three years of assessment in the statua of an association of penons. In appeals by D the Appellate Assistant Commi11iooer annulled the orders of assessment and remanded the case to the Income-tail Officer with a direction that the Income be as!ICssed as the income of the family of D. In appealt by D the Income-tax Appellate Tribunal con11rmed the order of annulment but ordered that the direction to alHll the income in the hands of D be deleted. The Tribunal's order was based on the view that D was a stranpr to the asaeasment proceed· inp. At the instance df the Comml11ioner of Income-tax the followlna questions were referred to the High Court : ( i) Whether D was a stranger in respect of the income-tax proceedings against Ambala Flour Mills ? (ii) Whether the Appellate Assistant Commissioner could give a direction in the case of Ambala Flour Mills to the effect that the income should be assessed in the banCh of D after annulling the assessment in the case of the Ambala Flour Mills ? (iii) Whether on the facts and in the circums-tances of the case the appeals filed by D were maintainable in law? The High Court answered the first question in the negative, the second in the affirmative with the rider that the assessment against D 'could only be in his individual capacity'; and the third question in the affirmative. Appeals were filed in this Court by both the parties. In this appeal the Commis-sioner df Income-tax questioned the order of the High Court by which they sought to modify the order of the Appellate Assistant Commissioner. HELD: (i) The first and tliird 'of the questions referred to it were,, correctly answered by the High Court. (a) D was competent to maintain the appeals filed by him to the Tribuna.l because by the order. of tJie Appellate Assistant Commissioner it was directed that he may be personally assessed by the Incom~-tax Officer in respect of the income of the Ambala Flour Mills. [391 C-0] Brat aged, tearat | BFATAT Getz free (The Commissioner of Income-tax, Patiala aAmbala Flour Mills).(27 axe, 1970) (Ito Ho Alo We, Bo THo BTS WIC Yo Tao Maz) .gfrsat gran daa O7z, 1922 (1922 FT 11) —ATeT 31, 34(3)ax 66—sa eafseal & daa alsifeafaAF araeaferare)amet faraten, freer St on azeq 2—agras argaa, (Watt) sreag fata fears fe fate ste gera a feat aTATalfey—afane & aaa st arr at ag aie aaa aa° Sarerfeat& facae safe adigd aatfe saafaaefoaitgegaat aise fast& mater & faeg acterwt at at—fader Hoge carat wares aged (sitet) gre fay ag fdaet aanafta sgt ae ama ate Ta NET BT SVT TTY BTfade, st afancn F aaer agi Sorat WaT AT, aera ART StSH, Tak F sa ot F anflare F A Ararat we fea F araH ATCATT HT VET St 1 29 ae, 1948 TTT A HT F faaed F far cHare orga feari geen dora sea ~TaTaa F Sa frie a aaa garsit 25 faarax, 1951 at fear vara1 faa B aaare were, ate FRSA HU A atta a faafea say, feeg ais wt gaat >gearwt at at dof HR are Hr cater Heat catat Fafayagafufaaifes fear ar fis ae ga arte & cea HAH areal A acaaeltga wt ar aaa freed at aat dof Hawt aaa st ahra F 6aferat ax F aarst aT HATSare BH afkaa Wea F atest aTaft areareart gay eae, wT faede we fear, GT TTT Bae Ft are gt aarat waratfrat ag1950-51 4% AF are at atefaaferat Great at(i) 4 waqaz, 1950 at oH at efaaa H; (ii)14 aim, 1951 ataafee at gfaaa A; ate (iii)1Garg, 1951 wywa we Al fara F aT SF ate St anfiarel a faaae att at 1 fratay 195t-52 % far Bt A aefeediaa wat ay sfaae F um faapret atfaster ad 1952-53 % feu st A fee afrwar Hera at*efaaa Foo fart sega etarnt afrardt a safeaat F ara aSfaaa H frater & dat ast F areata aeite fier at freer fears)| fare aid #, afte agen aaa s frei wat at oet aefear ate arreat araat afearet & arat ga free F ara fears fear«fe are art Frater te Hera al arr F wT F fear ara arfeas stater atlat Fara attr afeEu a AEA Hoa area st gheeat at, faeg ae acer far fe stcafes at are h faaicr }feamr are He fear ee| ahMT aT eT Sa aTATT Ie aaa aT PRSt frater arrarfeat & fry ax aise ar araHe aga % areaTa, farafafad seq sea eararaa at fade fee me F: (i) aaSt ararat cat facafees aranx srtarfeatat aaa ox ofaat?(ii) Fat wets agree gat arate sete face & aaa F eaareaat fate2 aaaT at fe ararar sare free at earFt fate.Bl ASA HWA F TATA St H earfaca Ht ara ar fratcy wear afEe?(iii) Fat aTAaAFH aea ate ofefeafaat F ara ge FV ara area‘alay atte fafa at afte 8 qart aha FP sea raragA wae oeaT RUA TH sae fear ate fata set Hea eaters artaU STH Taz fear fH AH fares Frater Fae saat aafertaefaaa & & feat at aKa at att qete veq aT aHTUN BT A Tazfeat| Saar arora H ctatcararel arer ate: Greer ait we oft|Sa atest FTTH AATFT Tea TATATH sa area Hr Batt afra arr Sait arate agrre argat Harta a sarafer HAT ATTari atte aiftt ed ge, afafatfea—sea emrarar arer saat fadfrr saa ate adieTeal BT, Met TAT fear war ary SY afsnewy ay Gah ara rer caettetaT wert& fay aera at wife attr aeraw yt F ae are ae freer feat aor ar fe Saar ararar eent< fasa st ava arnt afizart.are aufaara ea & faster fear sat arfac1 (Te 5 atx 6) ‘SY % faeg fata ea F attr agian agar 4 faateo ararfeai& fore oz cafesFt area aot aferatar cater aa fearay tA. faarforat seqa at at ak frater Fareat & free atta at atfratfecdt ara sataa aa at sa oatraal & aaa at are F eT FHT& far faagizy fot wat ar faa mast afeard & frowat a aeaz"qe stan aceraraia ater agree maga § onftedt B aaa a- Sfaaa Xara ar featur wea are aida at ager ax fear ar afar-storee fra stad fate ea wa:ag araafafaan,1922 at aret 34(3) Bara fet are31 F saat atx ArtqT ATA ata Ie HTAGe Hla fatae ara arral F xe raves staare are ara & fava % fae me fraaa at afte& face ea a faewert att (FT 8, 10, 11 ate 12) (b) In malting a direction, against 'D' the Appellate Assistant Com-missioner did not exercise his powers qua a stranger to the assessment proceeding. D had submitted returns and had also appealed against the orders of the assessment. The incoqie earned by the assessee was assess-ed to tax as income of an ·association df persons of which on finding of the Income-tax Officer 'O' was a member .. Since the Appellate Assistant Commissioner set aside the order assessing the income in the status of 'association of individuals, he had to give directions with regard to the assessment of the income. He was competent to give the directions in view of the provisions of s. 31 read withs. 34(3) of the Income-tax Act, 1922 and the interpretation plooed on the latter section by this Court in the r.ases of Murlldhar Bhagwan Das and Kanpur Coal Syndicate. [392 G-E; 394 0-F] Commis~ioner of Income-tax, U.P. v. Kanpur Coal Syndicate, 53 I.T.R. 225 and Income-tax Officer,· A-Ward, Sitapur v. Murlidhar Bhagwan D Das, 52 l.T.R. 335, applied. S. C. Prashar and another v. Vasantsen Dwarkadas and others, 49 l.T.R. 1, referred to. (ii) Tho High Court exercising advisory jurisdiction was incompetent to amend the order of the Appellate Assistant Commissioner. On the question referred to the High Court, no inquiry into the power of the Appellate Assistant Commissioner to make the impugned direction was competent. The second question only related to the assessment of the income in the hands of D after annulling the assessment Of the Ambala Flour Mills. It was not contended before the Tribunal that the income of the Ambala Flour Mills could not be assessed ·in the hands of the family of 'D'. The competence of the Appellate Assistant Commissioner to make the direction could ndt be and was not referred to the High Court. f395 A-CJ CIVIL APPELLATE JURISDICTION: Civil Appeals Nos. 1277 to 1279 and 1280 to 1282 of 1966. Appeals by special leave from the judgment and order dated October 14, 1966 of the Punjab High Court in Income-tax Refer-enc~ No. 16 of 1962. B. Sen, s. K. Ai,var, B. D. Sharma and R. N. Sachthey, for the appellant (in C.As. Nos. 1277 to 1279 of 1966) and the respon-dent (in C.As. Nos. 1280 to 1282 of 1966). Bishan Narain and A. N. Goyal, for the respondents (in' C.As. Nos. 1277 to 1279 of 1966) and the appellants (in CAs Nos. 1280 to 1282 of 1966). H The Judgment of the Court was delivered by Shah, J. Balkishan Das, Debi Prasad and Jai Ram Das . were partners in a trrding venture conducted in the name of the L 12 Sip. C I/70-11 Ambafa Flour Mills, Ambala. On April 29, 1948, Jai Ram Da~ commenced an action for dissolution and for account of the part-nership business. The Trial Court decreed the suit. In appeal to the District Court, the decree was reversed. On appeal under the Letters Patent from the judgment of a single Judge, the High Court of Punjab by order dated September 26, 1951 restored the decree of the Trial Court and declared that the partnership stood dissolved on April 29, 1948. The High Court observed : " .... notwithstanding the dissolution of the firnt Debi Parshad and Balkishan Dass carried on the busi· ness of the firm with the property of the firm. On these facts, 1 airam Dass plaintiff is entitled at the option of himself to such share of the profits made since he ceased to be a Partner as may be attributable to the use of his share of the property of the firm or interest at the rate of six per cent per annum on the amount of his share in the property of the firm." sq wraraa aarearadafsarkat ar sat wed ee attaaes Tye FB aaa FH AMaa awa F fre waa aTea TATAayafer fadftaseat oe orelfaa freer HUA st atta agras aged Fqait facda araa & fauenaE at aisealagaa BY oT awa F aad gear StH1 fedte carfacs set AratanT1% Frater & a defer 21 afewer F amet ag ata wa at ag Afe ararar qeitt face a ara at AH Hera F earfaes F fagizy,”"oatey fear waa ar amarF aner ar) fadfaa fate HVsel a aT aha aT aadt Tea Mt AAA att aHT st TeAAAT FH73 Ht 1 (At 15) fafzee fret [1949]49 aro gto aTo 1:. Uao Ato AATAI TH WT TTA TAAaT” *gravee Ie WT (S.C. Prasbarend Another Vs. Vasantsen Dwarkadas and @thers);- 10 of 1952] ©52 ATSo So BTXo 335:AIH MAHI, V-ATS, Mage TATA FLATAT ANAT STA (The Income-tax Officer, A-Ward, Sitapur ‘*Vs. Murlidhar Bhagwan Das); attIl [1953]53 ato dto HIXo 225:MART MTA, FAT HAT TATT BAYT Bierfarst&ea|(The Commissioner of Income-tax, Uttar|-. Pradesh Vs. Kanpur Coal Syndicate).7120Farferet arctan safrarizat : 1966 at fafa arate Ae 1277 a 1279 BIT 1280 F 1282. 1962 Sarat fata ae 16 F Ga soa wa F AKL Bl TS14 Taga, THT| 1966 aret facia aie area % free fats sara aaaa A ate aaaat fioAa, UteRoHear(1966 a fafa atadto Sto AAT AIX Alto Wao TAGAAT 1277 F 1379 H) ate7 Taal Bl AIT(1966atfafaa ate|avar 1280 8 1282 %#)oe.(1966 afafaaadieeat 1272-1279 #)||seataat at ate a wxaaa fara aTaayatzaaa at ate a|To Uto Nata(1966atfafaatteweat1280 & 1282 ¥)—— vargas ar froteararfraf Fo ato ae & fear rararfaafa ate——. aTHHOT area, SAY TaAIT HAT aTTSTA SAINT AreeH arflart F, HY aravaweite fed, AraF ATAFJ AMAT FT WTe°’ at 129 ada,1948 a serene are At wetter arcane% fares aKSar ® fae om ardardt oreaT fear arta A are: fettaax fear) frat rare& anita wet ot feat sae A1 THAcararetar h fava & favs ced tere} ata atta far oat It, Taeaoa rararaa t arate 26 faaeaz, 1951® at sree gra frayrare at feat at agra war ate ae aioe at fe aritardt aT29 ata, 1948 at faster gt TAT aT| Sea raaTAa BT AE AT AI— coon eocmey ar faqed Ba Te AY sat Tare AT ITAFOT TTa oat at arate & at ar arcane fear et aed HoT TT‘grat sau ara waaH fanet oz, va aaa A wT ay AVTATKwat MI,Bl ara& TS Tae Hr aware | AT GA FT arated Agam az at cam & arate wea ge gat Sar 6 ofaaa sfaatay avd, wa mt arafa Faw Bat Bl TA TT ATT FTeHare Sf 1”_2, arecafes WEAStars aTAH OT TATHTTATT % aTaay aracil at fasta ax fear ate areare TeIRAT, Hae aT TATErer gt AAA TAT aT-3, frafon ae 1950-51 8 et were a aa at ata faaefrataga Ft(i) 4-10-1950 #1 oH at afrat F (ii) 14-4-1951 aTcafsana afaaa H att (iii) 1-7-1951 at Ta GA Ft BfaaTe ¥ sitSaar ara ate Sat sara iaftaret & fre we at ott Frere ae1951-52 ® faa, at sare AaefaediaroHAt eat F oFact wea at faster ad 1952-53 % faq eat sare a fagafaaaa Hera Tl afaaa Hus farwl sega FtATsT orfrarey= oqfraat & dam at Sfaaa H dia Frater af F aearar gee fareswr fasten fear1 Sat cere areat ag ohtealTotter aeITs WIAA3 eqfaaat & ang at afaaa F fratfedtrater aaah v1 aaa HTRor afte ag arte fear fe arrat AA are H Hera AY GT F STHaah faaicr & fac arrax afeard & art fears featTTT 4Sal. TaTe. aT HT TE AAT A ATHT afia afsact 4 aaatafarareare fre.at Frater FY rae He ET ails TIT AAR F muta at gfe we at ate ae fader fear fe ht sere ¥ eanfires a aa & faaivor % fac fate ar ate ax feat are1 4. afracr a saat angaa & faearrare farafafad da seafafa fee—: -1, Far eat gate arareiT wae feed FH faes areaareata Hl tag TH It safaT ar ? 2. ear aie aaa ayaa ara gee fee a zata area ar face & aKar ar fH ararer sate feaay aar Ffraten at araer att F eae sat care F carfica Bt ara arfaaten frat ara arfec ?|: 3. war THe FoaeatsiteofefeafedtR are a”ft Fat gare ar wet at ay atte fafa at afee & aaaWy S1.:.5. Seq MAMAT Tt ITA TRA HT THU ST A Gat fear atx|facta seq ar daitea % ara earns BI FY FAT feat fe 2 warefees faster Fan ooftara frat# A fear or amar ar stkdeta sat Ht aT aHTUA BT FH fea||| During the pendency of the suit Balkishan Dass severed his -D _ connection with the business and the business was carried on thereafter by Debi Parshad alone. In the assessment year 1950-51, Debi Parshad filed three returns of income (i) on 4-10-1950 in the status of a !irm, (ii) on 14-4-1951 in the status of an individual and (iii) on 1·7-1951 in the status· of firm consisting of J ai Ram Das and Debi Parshad, partners. For the assessment year 1951-52, Debi Parshad filed a return in the status of an unregistered firm;- For the assessment year 1952-53 Debi Parshad submitted a return in the status of a Hindu Undivided Family. The Income-tax Officer assessed the Ambala Flour Mills in the three years of assessment in the statu~ of "an association of persons". In appeals by Debi Parshad, the Appellate Assistant Commissioner, "annulled" the orders of assessment of the assessee in the status of association of p.ersotis be set aside and that the case be remanded to the Income-tax Officer to assess the income as "the income of the family of Debi Parshad". In appeals by Debi Parshad, the Income-tax Appellate Tribunal confirmed the orders of the Appellate Assistant Commis-sioner annulling the assessment made by the Income-tax Officer and directed that the direction for assessing the income in the hands of Debi Parshad be deleted. The Tribunal referred the following three questions at tht> instance of tlJe Commissioner of Income-tax. 1. "Whether L. Debi Parshad was a stranger in respect of tbe income-tax proceedings against Ambala Flour Mills ? 2. Whether the Appellate Assistant Commissioner could give a direction in the case of Ambala Flour Mills to the effect that the income should be assessed in the hands of L. Debi Parshad after annulling the assessment in the case of Ambala Flour Mills ? 3. Whether on the .facts and in the circumstances B of the case the appeals filed .by Shri J?ebi Parshad were maintainable in Jaw ?" The High Court an1wered the first question in the negative; the ucond in the affirmative with the nder that the assessment against Debi Parshad "could onlr be in individual capacity"; and c the third question in the affirmative. Debi Panhad wu competent to maintaili the appeals fi!ed by him to the Tribunal because by the order of the Appellate Assis-tant Commissioner, it was directed that he may be personally assessed by the Income-tax Officer in respect of the Income of the Ambala Flour Mills. Counsel for Debi Parshad, however, contended that Debi Parshad was a stranger to the assessment proceedings and the Appellate Assistant Commissioner had no j11risdiction to direct after setting aside the order of assessment that Debi Parshad be assessed pen!onal!y in respect of the income of the Ambala Flour E Mills. The relevant provisions of the Income Tax Act may be noticed. · The relevant provisions of s. 31 of the Income Tax Act, 1922, are these : "In disposing of an appeal, the Appellate Assistant Commissioner may, in the case of an order of assess· ment: (a) confirm, reduce, enhance or annual the assess-ment; (b) set aside the assessment and direct the Income. tax Officer to make a fresh assessment after making such further inquiry as the Income-tax Officer thinks fit or the Appellate Assistant Commissioner may direct, and the Income-tax Officer shall thereupon proceed ot make such fresh assessment ........ " ( 4) "Where as the result of an appeal, any change irl the assessment of a firm or as8ociation o( persons or new assessment of a firm or associa- °6. tat sae sak are afiacn A grea a ag ada tat sae sak are afiacn A grea a ag ada sae sak are afiacn A grea a ag ada sak are afiacn A grea a ag ada are afiacn A grea a ag ada afiacn A grea a ag ada A grea a ag ada grea a ag ada a ag ada ag ada ada aaa& fac aaa at aaife adie aera mata & weer grr ag fazerfeat war at fe arate gate fired at arr at stag aaHt Afraglu sant aafsara er a frateo fear are| 7, warfa, at gare at a & aaa a ag acta A faeat sare fasten araatfeat ay araa ot eafea ar ate atte agraargad at Ra frattr & area al waed HWA FB cea ag fast 2at arg afeenrftar agt oftfis Bat sare ar arava gate fired atam at arta afta eq 8 faster fear sar afgrarra<afatranUae, & gina sedet ar wet sete feyoT awar 81 ea Zee 1922 Ht HTT 31 F gats Sede fare ga F—oo, 2048 seaqaA wary fara afer ‘cada farert & aria agra aged fratwr & aat at ear H— (=) frater at qfte ax amar g, eH HT aH2, aTGHA Fa Ga Aaa HL GHATS;=a(@) fraicn aoret ay ana ¢ alt arr afrarel atag fade 2 ama & fe ag Vat ata He Fea, Fal ATAHeafarara sta any, aa star adhe AelaH AIZIT fata 2, aT(fat & faateo at atc ageft araane aferdtar az fataFrater att BY HAAS HAT | (4) set frat aterofeorrmeaes fret wet at aafecatwane at wt F ae fret agar aafeaal & araA areafwada far ort at ee fear ora oat ata aga ayaoH & fat anita agar ara & fet wees ox few me feetfaatty aT qaqa waar aw F faq arar afsardsifrga Bt aHATg 1” * “Sash 3 ag ge vaTe B— In disposing of an appeal, the Appellate’ Assistant_ Commissioner may, in the case of an order of assessment— .(a) confirm, reduce, enchance or annul the assessment;®®° (a) confirm, reduce, enchance or annul the assessment;®° (b) set asidetheassessment and direct the Income-taxOfficer to make a fresh assessment after making such furtherinquiry as the Income-tex Officer, thinks fit or the AppellateAssistantCommissioner may .direct, and the Income-taxOfficer shall thereupon proceed to such fresh assessment. (4) Whereas the result of an appeal; any change inthe assessment of a firmorassociation of persons or newassessment of a firm or association of persons is ofdered to bemade,the appellate Assistant Commissioner may authorisethe Income-tax Officer to amend accordingly any assessment:made on any partnér of the firm.or any. member of. theassociation”.-°__oo:ee 8. wat farcfrat tat sere are are He aay s freq fafafaaat Forge at we1 arate afrard sr ae aa aT PR BTRATRcafeaal BH ArT FIT WAIT FT LST AT Ae BST AIT FT HIRATABl AT TL HL AMAT TT THAT AT | ale aa AAI HT Ae AT ATof army eat ware at at ate gate ar st aaa afama |r a vaot fratior fear ara aT|Temete: Rt afrardt Fag afafaaiferfrat fe dt gare cafeat & aay ar on wae aT) afe ateaes aya A cafeaal Fava at Bfaaa F are FR Prato atMet qed Ht feat ot, gafa sa aa e fair at waa fee 4 98 8 aad fe fratco afediar at fafir arr afsa met aT 9. ae 34 at Brera (3) ga safe at fafer wet @, fratpratatieatTo at ret | aarae afarare Prater at ardte awe are fea gare At ETT 23-F sehfaster & area A fee Patz aywaa ga: frac ar ae aaa, FAS srer 28 a sae (1)eI avs (7) art @ar &, waar za are at STANT (1a)avs (%) ar sare (1%) & aeia ontae armad F Frateraaagafaaitrsr mea sa at atamfta } Gat.aa, ara at afwara faater ae a, 4 ag ah aarfia ® TATTel fear area: tion of persons is ordered to be made, the Appellate Assistant Commissioner may autho-rise the Income-tax Officer to amend accord-ingly any assessment made on any partner of the firm or any member of the association". All the returns have been filed by Debi Parshad but in dif-ferent r:apacities. The Income-tax Officer was of the view that the business was carried on by an association of persons and the income from the business was liable to be brought to tax on that footing. The Appellate Assistant Commissioner was of the view that the income belonged to Debi Parshad and he was liable to be assessed personally in respect of the income. Evidently the Income-tax Officer held that Debi Parshad was a member of an association of persons. Since the Appellate Assistant Commis-sioner set aside the order assessing the income in the status of "association of individuals", he had to give directions with regard to the assessment of the income, provided the assessment was not ,barred by the law of Limitation. Section 34 sub-section 3 prescribes for the period in which assessment proceedings shall be completed. The section at the date of assessment by the' Income-tax Officer read as follows :- "No order of assessment or re-assessment, other than an order of assessment under section 23 to. which clause ( c) of sub-sect.ion ( 1 ) of section 28 applies or an order of assessment or re-assessment in ca!>es falling wirhin clause (a) of sub-section (I l or sub-section (IA) of this Section shall be made after the expiry of four years from the end of the year in which the income, profits or gains were first assessable : Provided further that nothing contained · in this section limiting the time within which any action may be taken or any order, assessment or re-assessment may be made, shall apply to a re-assessment made under section 27 or to an assessment or re-assessment made on the assessee or anv person in consequence of or to give effrct to any finding or .direction contained in an order under section 31, section 33, section 33A, section 33B, section 66 or section 66A". The assessment of tax had according to the law at the rele-vant time in force, ordinarily, to be completed by the Income-tax Officer within four years frOIIl the Jast da.te of the year of assessment in which the income, was first assessable. But to this C.I.T. V. AMBALA FLOUR MILLS (Shah,}.) “att Hag ge garx 8 [1974] 3 He fate qo qqae attfe ga are H araface ate AY ara ot TAgag at afedlfaa wedt & frat ata Ag it arcane A oTagal a at mg Wt area, fraten ar gafrai wt fear oTaval at, ae 27 Fadia faa ag feel gafrater ay aaaFraffedt I< AAAT TA 31, IM 33, Ie 33-% AIT AT 33-q,rer 66 AT aTer 66m & ata fet anda H araface fartfreag ar fata & ofeormeqeq ar gaat arieq 28% facfratfeat at Prat cafe ox faq ae freter argafrater atary vet arit t”| 10. va fafr & agers st gare aH A cae at, He aT Fratermarae afaart ara ga faster ay at afeaa arte 4, frat aragama: faaten ater et arava: 4 ag H ahr ger Mat art feed Fafan ® wae state Fi ate feat fade a few ae frat grader ar|gaa tats aera agaa a atta afeacn or aged F area Aaraface fret frond at fata F afearseqeq ar saat ward HTTfau fret fautfedt ar feat oaft oe arg fraterfear ara at atfaufer art ad at annfea% gear wh far aT awa aT1 as ATaTefrat seaat afsnen, TAA Gea HATTA ATA BI ATTA F AATXH acatace feet fasnd ar fata% ofeormeqet ar seat fgeq 23 & fac fratfedt agar feet ofea % fees feo ae Frater atany gat 21 ga ararar F Ua Ato MAT HIT UH AA TATA ATTAarcarara wit wea? TTA Aaa Taeafafautfca fear fe gaa cagRaz, 1922 a arer 34 (3) aT fata Tega set am fe ag Meifedt T 49 argo do arty “Le H daa F pratargl A saya ela arell feat ada, garter ar free% fac an frome at face & ofeormeqeq ar sa saat wat a farare 34 F fatatase ofeatar al wate at aarita F ceare fratfedt &fart fat cafaar s frater azar gafrater at sifrea axa 2 agiae ag afaara & aqege 14H sudey Hr ata HA ara & atxva feat am afafrara 2) ll, ataat ufsart vats, aay aay qyeilae wTaraara!“aa Tea Hae H gs 346 Tl ee MATA aA ae’ geBT ye ease fear Flag AT 34 Bt saat(3) F cegR2 F