K KARUPPAIAH NADAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE questions have been brought before us, at the instance of the assessee. THEy arise out of the order of the Tribunal for the assessment years 1972-73, 1973-74, 1974-75, 1975-76 and 1976-77.

(2.) THE assessee as a karta of his Hindu undivided family, is a partner in the firm of Karuppiah Nadar. His minor sons had been admitted to the benefits of the partnership. For these assessment years, the assessee did not file any return of his income in his individual capacity on the ground that he had no income in that capacity. THE children of the assessee were assessed separately in respect of their income from that firm. After the assessment for these years had been completed, they were reopened on the ground that the assessee had failed to file a return in his individual capacity, as the income received by his children who had been admitted to the benefits of the partnership, was under Section 64 of the Income-tax Act, required to be treated as income assessable in the hands of the father.

(3.) AS regards the first question regarding the correctness of the Tribunal's views that the Income-tax Officer was justified in reopening the assessment under Section 147 of the Act, it must be held that it was justified for the assessment year 1976-77 only and not for other assessment years. We answer the first question referred to us, namely :--