JAYARAMA REDDY G R Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this reference at the instance of the assessee relating to his assessment for the asst. yr. 1957-58, the question referred is :

(2.) THE return of loss referred to in the question was with reference to the immediately preceding asst. yr. 1956-57, in which he declared a loss of Rs. 12,862. THE ITO issued office to him under s. 23(2) and 22(4) and concluded he assessment with the following observations:

(3.) THE only distinction upon facts between that case and this case is that the assessment in that case was completed under sub- s. (1) of s. 23. THE officer accepted the return as correct and completed without calling upon the assessee to produce evidence. But, in the present case, the case was not disposed of without issuing any notice to the assessee. As already stated notices were issued and it is after hearing the assessee on the question of status, etc., that the order mentioned above came to be passed. Hence, it cannot he said that the assessment must be deemed to have been concluded under sub-s. (1) of s. 23. But what can be said as a matter of law, applying the law stated by the Supreme Court, is that the assessment was undoubtedly concluded by the order cited above. What remains is to interpret that order.