Judgement

SUBBA RAO, J. : These two appeals, one by special leave and the other by certificate, raise the question whether notice can be issued at any time for reassessment under S. 34 (1) (a), as amended by the Finance Act, 1956, of the Indian Income-tax Act, 1922, hereinafter called the Act, in respect of a concealed income to which S. 34 (1A) thereof applied.

2. The facts may be briefly stated. Messrs. Shahzada and Sons, the 1st respondent in both the appeals, was an undivided Hindu family Firm and it was assessed in that capacity upto the assessment year 1945-46. It is alleged that subsequently there was a partition in the family and a new firm came into existence, which took over the business of the family. On March 26, 1954, the Income-tax Authorities issued a notice to the members of the defunct Hindu undivided family under S. 34 (1) (a) of the Act in respect of the assessment year 1945-46 on the ground that certain income of the said family had escaped assessment. Pursuant to the proceedings so initiated, a sum of Rs. 3,63,000 was added to the original assessment of the said family. The assessee took up the matter on appeal to the Appellate Assistant Commissioner, who held th