Judgment

S. K. DAS, J. The facts of this appeal have been stated by my learned brother Kapur, J. and as I am in agreement with him, I need not re-state the facts.

2. The relevant assessment year was 1942-1943. The proceedings under S. 34 of the Indian Income-tax Act, 1922 were initiated with the issue of a notice on July 25, 1949. The assessee s contention was that the initiation of proceedings on July 25, 1949 was invalid as the department s right to revive the assessment was governed by old S. 34 where the period of limitation prescribed was only four years in the case of a failure to file a return and this period having expired on March 31, 1947 and the Amending Act of 1948 (XLVIII of 1948) having come into force on March 30, 1948 the eight years period provided therein could not be invoked. The High Court upheld this contention and said:

"In our opinion, the contention of the learned counsel for the assessee is well founded, that the new rule of limitation of eight years prescribed by the amended S. 34 would not apply to the case of the assessee before us, whose was an instance of a failure to submit a return, when the period of four years had ran out long before 30th March 1948