The appellant, at the time a resident of Lahore, was assessed to income-tax on an income of Rs. 49,047 for the. assessment year 1944-45 by the Income-tax Officer, Lahore. After the partition in 1947 he shifted to Delhi and resided there. He was one of the three share-holders of a company called hclra Singh and Sons Ltd. of Calcutta, the shares of all the three shareholders being equal. The company at a meeting held Gn April 17, 1943· passed its accounts for the year ending Mar~h 31, 1942, but declared no dividends although the accounts disclosed large profits. On June Ir, 1947, the Income-tax Officer, Calcutta, passed an order under s. 23A of the Income-tax Act that the sum of Rs. 4,74,370, being the appellant's share of the undistributed assessable income of the company, be included in his income for the assessment year 1944-45. Thereupon the Incometax Officer, Delhi, on April ro, 1948, issued a notice to the appellant, who was then working as·the Defence Minister of India and residing in Delhi, under s. 34 of the Act to file a revised return, which he did under protest, reopened the earlier assessment and by a fresh order made on ~larch 25, 1949, assessed the appellant on an income of Rs. 5,23,417 for the year in question. It was contended on behalf of the appellant that the f ndia roceeding under at all. The question for determination was whether s. 34 could be held only in Lahore and not in the Income-tax Officer, Delhi, could validly reassess the appellant under s. 34 of the Act.
