ARULANANDAM V S Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner and Murugan were part numbers each with a half share in the firm of Messrs. Murugan Arulanadam and Co., which carried on business at Tuticorin. THE petitioner himself was resident of Ceylon. THE Income-tax officer refused registration of that firm for the assessment year 1951-52 also, as he had refused it in the previous years from 1949-50. THE Income-tax officer completed the assessment for 1951-52 on November 11, 1954. It was the unregistered firm that was assessed. THE only source of income of the petitioner in the taxable territories was his share of the profits of the firm. He filed a separate return, wherein he claimed that he was a non-resident. On February 24, 1955, the Income-tax Officer closed the individual assessment of the petitioner. THE petitioner was treated as resident and ordinarily resident, as against his claim that he was a non-resident. THEre was, however, no assessment of tax and it was treated as a case of "no demand", because his share of the income of the firm had already been assessed along with the rest of the income of the unregistered firm. THE petitioner himself did not pursue the matter further.

(2.) THE firm appealed against the refusal to grant registration, as it had appealed with reference to the previous years also. THE Appellate Assistant Commissioner allowed the appeal for 1949-50. THE appeal with reference to 1951-52 also was allowed on August 21, 1955, though the appellant was absent at the hearing. THE relevant portion of the appellate judgment in relation to the assessment year 1951-52 ran :

(3.) AFTER referring to the notice issued under section 35 on November 18, 1958, and to the grant of time till December 15, 1958, to file objections the Income-tax Officer recorded :