COMMISSIONER OF INCOME TAX Vs. SRIKISHAN DASS

JUDGEMENT

(1.) These three Income Tax references can be disposed of together. They arise out of the assessments of the three partners of the firm of M/s. Rameshwar Dass Sri Kishan Dass (hereinafter referred to as "the firm"). They relate to the assessment year 1961. All the three reference involve the same question of law.

(2.) The firm was assessed to Income Tax for the assessment year 1961 -62 by an assessment order dated September 13, 1963. Each of the three respondents in the references before us was assessed on his respective share income as apportioned in the assessment of the firm. These three assessments were completed under s. 23(3) of the Indian I.T. Act, 1922. The assessments in the cases of Om Parkash and Shri Kishan Dass were completed on October 21, 1963, and the assessment in the case of Rameshwar Dass was completed on February 22, 1966.

(3.) Subsequently, a mistake in the assessment order of the fir came to light. The ITO thereupon rectified the assessment of the firm for the year under s. 154 of the I.T. Act, 1961, on February 9, 1968. As a result of this order, the income from the ready business carried on by the firm was enhanced. The ITO thereafter initiated proceedings to carry out the effect of the above rectification in the case of the three partners. He took steps in this behalf by issuing notices purporting to be under s. 155 of the Act of 1961. Orders under this Sec. carrying out the appropriate modifications were passed in all the cases on February 15, 1968.