SABYASACHI MUKHARJI, J.

( 1 ) THIS is a reference under Section 66 (1) of the Indian Income-tax Act, 1922. The reference relates to the assessment years 1954-55, 1955-56, 1957-58 and 1958-55 for which the relevant previous years were the financial years ending 31st March, 1954, 31st March, 1955, 31st March, 1957, and 31st March, 1958, respectively. For all these years the firs question referred to this court is :"whether, on the facts and in the circumstances of the case, the income from the house properties at 53a and 53b, Gariahata Road, Calcutta, was rightly included in the total income of the assessee under Section 16 (3) (a) (iii) of the Indian Income-tax Act, 1922 ? "

( 2 ) IN appears that the said question had also been referred for the assessment year 1956-57 in Income-tax Reference No. 42 of 1963. This court has answered the question in the affirmative and in favour of the revenue. In view of the aforesaid decision in Income-tax Reference No. 42 of 1963 the question No. 1 has to be answered in the affirmative and in favour of the revenue.

( 3 ) FOR the assessment years 1954-55 and 1955-56 another question being question No. 2 has been referred to this court in the instant reference. The said question is as follows :" Whether, on the facts and in the circumstances of the case, the Tribunal could in law uphold the assessments for the assessment years 1954-55 and 1955-56 on the notices under Section 34 (1) (a) with reference to the powers under Section 34 (1) (b) of the Indian Income-tax Act, 1922 ?"

( 4 ) IN order to appreciate this question it would be necessary to refer to certain facts. The assessee is an individual and has income from salaries, properties and other sources. For the assessment years 1950-51 to 1955-56 the Income-tax Officer issued notices under Section 34 (1) (a) on the 10th July, 1958, in order to include "income from property at 53a and 53b, Gariahata Road, Calcutta, standing in the name of his wife " on the footing that Section 16 (3) was applicable. These assessments were completed on 25th August, 1958. The assessment proceedings for 1957-58 and 1958-59 were initiated under Section 22 and the assessments were completed under Section 23 (3) on the 29th November, 1958. On appeal the Appellate Assistant Commissioner decided the appeals for the years 1950-51 to 1958-59 (but not for 1956-57) by a common order. The Appellate Assistant Commissioner held that the proceedings under Section 34 for the years concerned has been validly initiated and further that the provisions of Section 16 (3) were attracted. He, accordingly confirmed the assessments.

( 5 ) THERE was a further appeal to the Tribunal. The Tribunal's attention was drawn to its consolidated order dated 25th July, 1962, in Income-tax Appeals Nos. 9865 to 9868 of 1960-61 relating to the assessment years 1947-48 to 1949-50 and 1956-57, where the validity of action under Section 34 had been considered. The Tribunal had held that there was no omission by the assessee to disclose the material facts and as such the proceedings under Section 34 (1) (a) did not lie. The basis for the Tribunal's so holding seems to be that under the law an assessee is obliged to disclose all the particulars of his income. But the law also imposes upon the Income-tax Officer a duty under Section 16 (3) to include certain other income in the income of the assessee even though these are not the income of the assessee. Failure to disclose those incomes which the law enjoins the Income-tax Officer to include under Section 16 (3) of the Indian Income-tax Act, 1922, does not amount to a non-disclosure by the assessee in terms of Section 34 of the Indian Income-tax Act, 1922. The Tribunal, however, considered that Section 34 (1) (b) might have been applicable but the proceedings were barred by limitation for the assessment years 1947-48 to 1949-50. As regards the assessment year 1956-57 which was a regular assessment made under Section 23 (3) the Tribunal held on merits that

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