INCOME -TAX OFFICER KOLAR AND ANOTHER vs SEGHU BUCHIAH SETTY

The Supreme Court held that under Section 29 of the Indian Income-tax Act, 1922, when an order of assessment is revised on appeal, the Income-tax Officer must issue fresh notices of demand reflecting the revised tax amount before treating the assessee as a defaulter. The Court affirmed the High Court's decision that the Income-tax Officer's failure to issue fresh notices rendered the recovery proceedings illegal. The dissenting opinion argued that existing notices should still be enforceable, subject to adjustments based on the appellate order.