- (1.) THIS is an appeal against a judgment and order of Sinha, j. , dated March 19, 1964, whereby a rule nisi issued in a petition under Art. 226 of the Constitution was made absolute. The facts involved in this appeal, and the questions of law, are similar to what was raised and dealt with by us in our judgment in Appeal from original Order No. 186 of 1965, (5) Sm. Bagsu Devi Bafna v. The Commissioner of Income Tax, West Bengal and Ors. (infra) in which, however, Banerjee, J. , had discharged the rule. In the appeal now before us, the rule was made absolute.
(2.) I shall briefly refer to the facts before dealing with the judgment of the trial Court. The appellant filed a return regarding her income for the year 1960-61 sometime in February, 1961, pursuant to a notice under section 22 (1) of the Income Tax Act, 1922, (hereinafter referred to as the Act ). Thereupon the income tax officer called for the returns of earlier years. The appellant filed such returns for the years 1953-54 to 1959-60. On February 18, 1961, the assessment orders were passed for the years 1953-61. On January 20, 1963, the commissioner of Income Tax, the: appellant No. 1 herein, issued a notice on the respondent under Section 33b of the Act. The contents of this notice as set out in the judgment of the trial court are as follows: - "on calling for and examining the records of your case for the assessment years 1953-54, 1954-55, 1955-56, 1956-57, 1957-58, 1958-59, 1959-60 and 1960-61 and other connected records I consider that the orders of assessment passed by the income-tax Officer, 'd' Ward, Howrah on 18-2-61 are erroneous tin so as they are prejudicial to the interests of revenue for the following reasons amongst others. 2. Enquiries made revealed that no business was carried on by you as alleged in the Returns. Also. the Income-tax Officer was not justified in accepting the initial capital, the income from business, the acquisition and sale of jewellery, etc. without any enquiry or evidence whatsoever.
(3.) I, therefore, propose to pass such orders thereon as the circumstances of the cases justify after giving you an opportunity of being heard under the powers vested in me under section 33b of the Income-tax Act, 1922. The cases will be heard at 11 A. M. on 7-2-63 at my above office when you are requested to produce the necessary evidence in support of your contentions. Objections in writing accompanied by the necessary evidence, if any received on or before the appointment for personal hearing will also be duly considered.;