COMMISSIONER OF INCOME TAX Vs. VENUGOPAL K L

JUDGEMENT

(1.) THE two questions referred by the Tribunal for the opinion of this court are :

(2.) THE assessee had been assessed in the status of an "individual" up to the assessment year 1970-71. For the first time in 1971-72, the assessee claimed the status of a "Hindu undivided family". THE Income-tax Officer negatived the claim on the ground that the assessee had obtained property and business from his grandfather by virtue of his will and so the status continued to be that of individual. THE position was the same for the assessment years 1972-73 and 1973-74. For the years 1974-75 to 1976-77 again the assessee filed the returns in the status of a "Hindu undivided family". THE Income-tax Officer, instead of rejecting the claim and making assessments in the status of an individual as in the past, issued notices under section 148 calling upon the assessee to submit returns in the status of an "individual". For those notices, there was no response. THEreupon, the Income-tax Officer took action under section 147(a) read with section 144 and made the assessment orders for the years 1974-75 to 1976-77. THE assessee appealed to the Appellate Assistant Commissioner who agreed with the Income-tax Officer in making the assessment but directed him to accept the returned figures. THE Revenue appealed to the Appellate Tribunal. THE assessee filed cross-objections challenging the validity of the assessment orders.

(3.) IN response to that notice, the assessee could have filed a return in the status of an individual showing the income as "nil". But he did not respond to that notice. IN the circumstances, the INcome-tax Officer was also justified in proceeding on the basis that there was no return filed by the assessee in response to the notice issued under section 148.