NILOFER HAMEED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE matter arises under the Income-tax Act, 1961. THE petitioners are partners in a firm under the name and style "Kerala Hides and Skins" engaged in the business of purchase and sale of hides and skins. According to them, their only source of income is the share income from the said firm.

(2.) THE firm filed its return of income for the assessment years 1986-87, 1987-88 and 1988-89. THE assessment for the year 1987-88 was completed while the assessment for the years 1986-87 and 1988-89 were pending. Against the assessment order for the year 1987-88, the firm filed an appeal before the Commissioner of Income-tax (Appeals) and that was pending. While so, the firm had moved a settlement petition on September 25, 1991, before the Settlement Commission (Addl. Bench), Madras, for settling its income for all the aforesaid three years. THE Settlement Commission by its order dated November 10, 1993, settled the case of the firm by determining its income on an estimated basis. THE Assessing Officer passed the assessment orders in respect of the firm on December 7, 1993, relating to the assessment years 1986-87, 1987-88 and 1988-89 in compliance with the directions of the Settlement Commission. THE orders so issued were described as one issued as per the order under Section 245D, dated November 10, 1993 (exhibits P-2 to P-4).

(3.) THE petitioners have also sought to quash exhibits P-9 to P-14 notices and all further proceedings pursuant thereto. THE petitioners also sought for interdicting the respondent from enforcing exhibits P-15 and P-16 or conducting any further proceedings in pursuance thereof.