COMMISSIONER OF WEALTH TAX Vs. NARAYANA G E

JUDGEMENT

(1.) IN TRC Nos. 23 and 24 of 1987, the following question is required to be answered under the provisions of the WT Act, 1957 ("the Act" for short) :

(2.) IN respect of the asst. Years 1977 78 and 1978 79, WT returns were filed by G. E. Narayana on 25th Aug., 1977, and 12th Sept., 1978, respectively as Karta of the HUF. The HUF consisted of himself and his minor son. On 26th June, 1982, G. E. Narayana died. Thereafter, assessment orders were made on 14th Feb., 1983, and 28th March, 1983, respectively, in respect of the two assessment years, assessing the HUF. In other references also, the situation was the same. The same Karta of the HUF, G. E. Narayana, had filed the WT returns for the various years before his death. But, in all those cases also, the assessment orders were made after his death. Consequent on the death of G. E. Narayana, the HUF ceased to exist because his only minor son was left by him who was earlier a member of the HUF. Therefore, it was contended that, on the extinction of the HUF, there was no HUF on which an assessment order could have been made and there is no provision in the Act providing for such a contingency to make an order of assessment in respect of a return filed earlier by the then existing HUF which ceased to exist by the time the assessment order is made. The Tribunal has accepted this contention and held that there is no machinery to assess an HUF which ceased to exist after filing the return. Hence, these references.

(3.) LEARNED counsel further pointed out that ss. 20 and 20A provided for the assessment of an HUF after its partition or after a partial partition which again indicate the scheme of the Act to tax an HUF and collect the tax payable by it under all circumstances.