KENCHE GOWDA H Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THESE petitions are filed under section 55 of the Karnataka Agricultural Income-tax Act, 1957 ("the Act" for short), against the order dated June 9, 1986, purporting to revise the assessment orders passed by the Agricultural Income-tax Officer for the assessment years 1979-80 and 1980-81 in respect of one Kenche Gowda and the assessment order against the other coparceners of the erstwhile Hindu undivided family (HUF).

(2.) THE facts of the case in brief are as follows :

(3.) IN answer, Sri R. H. Chandan Goudar, learned Government Advocate, contended that when income was assessed in the hands of wrong persons, proceedings may subsequently be taken to revise the assessment so that the persons properly chargeable in respect of that income may be assessed, and relied on the decision of the Supreme Court in Manji Dana v. CIT and in the case of ITO v. Bachu Lal Kapoor [1966] 60 ITR 74. Elaborating his contention, learned Government Advocate submitted that section 35 of the Act empowers the Commissioner to initiate proceedings if he comes to a conclusion that in any proceedings there is an order which is erroneous and prejudicial to the interests of the Revenue. IN the instant case, the income has been assessed in the hands of the separated coparceners while it should have been assessed in the hands of the erstwhile Hindu undivided family and in making proper adjustment, the Revenue had power to bring to tax the income of the family while revising the assessment on the individual members.