ICE & GENERAL MILLS vs INCOME TAX OFFICER, CENTRAL CIRCLE II, MEERUT

The Supreme Court held that the factual pendency of proceedings under Section 34(1) of the Income Tax Act, 1922, on April 1, 1962, is crucial for the applicability of Section 297(2)(d)(ii) of the Income Tax Act, 1961. The Court ruled that since the proceedings regarding the escaped income were pending, the notice issued under Section 148 of the 1961 Act was incompetent. The Court allowed the appeal, affirming that the initiation of proceedings under Section 34 was not without jurisdiction and thus valid.