Judgment - Chagla, C.J.

1. The assesses is a private limited company and has succeeded to the business of one Maneklal Chunilal. The assessment on the income of Maneklal Chunilal was made on 14-6-1937, and the assessment was for the accounting Sam vat Year 1992. That accounting year closed on 14-11-1936. On 14-3-1939, the Income-tax Officer served a notice Under Section 34 upon the assessee company and a further notice was served Under Section 22(4) to produce certain books of account. The assessee company failed to produce the accounts and thereupon the Income-tax Officer made a best judgment assessment Under Section 23(4). An appeal was preferred to the Appellate Assistant Commissioner and finally to the Tribunal, who confirmed the assessment, and the question that arises before us is whether the assessee company was liable to be assessed in respect of the income of Maneklal Chunilal which escaped assessment.

2. The point which has been urged before us by Mr. Palkhiwala is that the assessee company succeeded to Maneklal Chunilal on 16-9-1937, and proceedings Under Section 34 have been taken in respect of the assessment for the Samvat Year 1992, and inasmuch as the assessee compan

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