Salil Kumar Datta, J. -
(1.)This is an appeal by the revenue against the judgment and order of Sabyasachi Mukherjee J. dated February 25, 1971, whereby the rule obtained by the respondents was made absolute in part. The relevant facts are as follows :
(2.)Kanailal Jatia, the original assessee, was assessed on September 28, 1954, on a total income of Rs. 87,269 for the assessment year 1945-46, under the Indian Income-tax Act, 1922, and taxes were duly paid. The assessment was reopened under Section 34(1A) of the said Act and notice dated March 29, 1956, thereunder was served on him by affixation and there is no dispute over this. Kanailal Jatia died on January 19, 1958, and the assessment was completed ex parte on September 29, 1958, pursuant to the said notice. The legal heirs of Kanailal Jatia, the petitioners in the connected rule, who are the respondents before us, preferred an appeal against the said reassessment to the Appellate Assistant Commissioner, who by order dated July 11, 1961, set aside the said assessment and directed the Income-tax Officer to make fresh assessment after bringing on record the legal heirs of the deceased assessee.
(3.)The Income-tax Officer thereafter issued notice on July 28, 1962, under Section 22(4) of the Indian Income-tax Act, 1922 (hereinafter referred to as the 1922 Act), on the respondents as legal heirs of Kanailal Jatia. On non-compliance thereof the Income-tax Officer, Central Circle XVIII, Calcutta, the appellant No. 1 before us, passed fresh order of reassessment on August 15, 1962, on the legal heirs of Kanailal Jatia, deceased, under Section 23(4) read with sections 34(1 A) and 31(3)(b) and determined a sum of about Rs. 19 lakhs as tax payable on a total income of about Rs. 22 lakhs for the assessment year 1945-46. Notice of demand under Section 29 was issued to the appellants on September 26, 1962.