Sen, J. - (1.) This is a consolidated reference under Sections 66(1) of the Indian Income-tax Act, 1922, and 256(1) of the Income-tax Act, 1961, at the instance of the Commissioner of Income-tax, West Bengal-II, Calcutta. The Tribunal has drawn up a case and referred the following question: " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the proceedings under Section 18(7) of the Indian Income-tax Act, 1922, for the assessment years 1960-61 and 1961-62, and under Section 201(1) of the Income-tax Act, 1961, for the assessment years 1962-63 and 1963-64, respectively, were barred by limitation ? "
(2.) The facts found and/or admitted are that one W. J. Woodhouse had been employed by the Eyre Smelting Private Ltd., the assessee, at the material time. After the personal assessments of Woodhouse for the assessment years 1960-61 to 1963-64, were completed in March, 1963, he left the employment of the assessee and finally left India permanently. Thereafter, the Income-tax Officer served on the assessee a letter dated the 28th July, 1964, addressed to Woodhouse stating, inter alia, that the tax in respect of his income had been under-charged for the said assessment years inasmuch as the commission received by him should have been included for the determination of the value of rent-free quarters allotted to him. Accordingly, the Income-tax Officer proposed to rectify the said assessments.
(3.) In spite of objections of the assessee to the proposed rectification the Income-tax Officer passed orders under Section 154 of the Income-tax Act, 1961, on the 22nd November, 1964, and amended the assessments of Wood-house enhancing the tax payable by him.;