MADAN LAMBA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) These two income tax references, pertaining to the assessment years 1960-61 and 1961-62 (the relevant previous years being the financial years 1959-60 and 1960-61) can, be disposed of by a common judgment as they raise the same question and on similar facts.

(2.) Madan Lamba, the assessee, is the irianaging partner of a firm known as Volga Restaurant, New Delhi. He had an eight annas' share in the firm and was also entitled to a salary of Rs. 12,000 from the firm. The two other partners, together entitled to the other half share, were ladies who were closely related to the assessee. During the financial year 1959-60, the assessee was also a partner in a firm known as Volga Caterers, the business of which ended in a loss during the said year.

(3.) For the assessment years 1960-61 and 19'61-62 notices under Section 22(2) of the Indian Income-tax Act, 1922 had been served on the assessee. ^ The returns of income for the two assesstment years should, in compliance with these notices, have been submitted by the assessee on or before the 12th July, 1960 and 18th July, 1961 respectively. It, however, appears that, for the assessment years 1960-61, the audit of the accounts of the firm, Volga Restaurant, was completed on 22-12-1962 and its return of income filed only on 24-12-1962 and that for the assessment year 1961-62, the firm filed its' return of income only on 5-11-1965. Consequently, the assessee filed his returns for the two assessment years in question on 10-1-1963 and 5-11-1965 respectively.