COMMISSIONER OF INCOME TAX Vs. JAGDISH CHAND

JUDGEMENT

(1.) In respect of the assessment years 1972-73 and 1975-76, the Income Tax Tribunal has referred the case and stated the following question to this court :

(2.) Shri Jagdish Chand was a partner of a firm, Messrs. Madan Lal Jagdish Chand. During the pendency of this reference, Shri Jagdish Chand died and his legal representatives had been brought on record. Shri Jagdish Chand had contended that his income from the said firm should be assessed in the hands of the Hindu undivided family. The order of the Income Tax Officer, for the assessment year 1972-73, was cancelled by the Commissioner of u/s 263 of the Act and the Income Tax Officer was directed to pass a fresh order. On Jan. 31, 1978, a fresh assessment order was passed u/s 143(3) for the assessment year 1972-73 and the said income was taxed in the hands of Jagdish Chand as an individual. Similarly, for the assessment year 1975-76, on the same day, i.e., Jan. 31, 1978, assessment was made on Shri Jagdish Chand, in respect of the share income, in his capacity as an individual.

(3.) Appeals were filed by the assessed and the same were allowed by the Appellate Assistant Commissioner. The Income Tax Officer was directed to exclude the share income from the income of the assessed as an individual. In arriving at this conclusion, the Appellate Assistant Commissioner followed an earlier decision of the Tribunal in respect of another partner of the firm where a similar contention had been raised.