COMMISSIONER OF WEALTH TAX Vs. VALIYA ARYAN BHATTATHRIPAD

JUDGEMENT

(1.) AT the instance of the Revenue, the Income-tax Appellate Tribunal has referred the following two questions of law for the decision of this court.

(2.) THE respondent/assessee was the karta of a Hindu undivided family. We are concerned with the assessment year 1977-78, for which the relevant valuation date was 31-12-1151 (Malayalam Era), corresponding to August 15, 1976. It is seen that the assessee filed a return of net wealth. An assessment was made on the basis of the return submitted by the assessee. In the first appeal filed before the Commissioner of Income-tax (Appeals), objection was taken that the very assessment was null and void as it was made on the karta of the Hindu undivided family which stood disrupted from December 1, 1976, as a result of the Kerala Joint Hindu Family System (Abolition) Act, Act 30 of 1976. This plea was repelled by the Commissioner of Income-tax (Appeals) by holding that the assessment related to a period before the coming into force of the Act. THE Act came into force on December 1, 1976. But, in second appeal, the Income-tax Appellate Tribunal held that the assessment was made on January 3, 1983, long after the Kerala Joint Hindu Family System (Abolition) Act, 1975 came into force. Relying on the Bench decision of this court in WTO v. Madhavan Nambiar's case [1988] 169 ITR 810 (W. A. No. 159 of 1981) and also in Sreepadam v. CWT [1985] 155 ITR 318 (Ker), the Income-tax Appellate Tribunal held that since there was no joint Hindu family in existence on the date when the assessment order was passed, the assessment order is a nullity. It is thereafter at the instance of the Revenue that the questions of law formulated hereinabove have been referred for the decision of this court.

(3.) THE reference is disposed of as above.