VEDANTHAM RAGHAVIAH Vs. INCOME TAX OFFICER THIRD ADDL

JUDGEMENT

(1.) THE Third Additional Income-tax Officer, attached to City Circle V, Madras, passed an order on March 23, 1960, purporting to be one under section 35 of the Indian Income-tax Act and levied a tax of Rs. 49,965.08 on the petitioner for the assessment year 1955-56. THE petitioner challenges the validity of the said order and prays for the issue of a writ of certiorari or other appropriate writ for quashing the same.

(2.) THE facts leading up to this writ petition are briefly as follows : THE petitioner (assessee) is a professional cinedance director. He was also a partner of a firm called Vinodha Pictures, carrying on business of production of motion pictures. THE firm of partnership was constituted by a deed dated January 20, 1950. At the inception there were four partners including the petitioner. This partnership functioned between January 20, 1950, and June 27, 1952. One of the partners, Subburam, retired from the firm and a fresh partnership was constituted between the other three partners which subsisted between June 28, 1952, and July 28, 1953. THEn another partner, Raghavacharya, went out of the partnership and the two business between July 29, 1953, and November 12, 1954. In respect of the assessment years 1953-54, 1955-56, applications were made on behalf of the firm under section 26A of the Income-tax Act for registration. THEse applications were signed by the partners of whom the petitioner was one. Registration was granted for all the years. THE firm was assessed as a registered firm and the particulars of assessment are as detailed below : <FRM>JUDGEMENT_314_ITR49_1963Html1.htm</FRM>

(3.) THE stand taken by the petitioner in resisting these proceedings under section 35 of the Act was that the assessment of the firm was pending before the Appellate Assistant Commissioner and also before the Tribunal and that until the firms assessment reaches a stage of finality no action under section 35 should be taken against him. THE petitioner did not file any revision to the Commissioner of Income-tax from the orders of the Income-tax Officer under section 35 of the Act as apparently at that stage he was willing to abide by the result of the pending appeal in connection with the firms assessment. He merely prayed for time to pay the tax and permission to pay the total amount in instalments of Rs. 2,000.