CIT Vs. PADMANI G. THADANI

JUDGEMENT

(1.) This is the reference under Sec. of the Income Tax Act, 1961 at the instance of the revenue raising the following questions of law:

(2.) Brief facts of the case are that the Assessee and her husband are the partners in a firm in the name and style of M/s Basant Cinema. The dispute pertains to the assessment years 1975 -76 to 1976 -77, the relevant previous years ended on 30 -6 -1974 and 1975 respectively.

(3.) In the assessments originally framed, the Income Tax Officer had not considered the applicability of the provisions of Sec. of the Act even though all the material facts were before him. Thereafter, he initiated proceedings under Sec. / of the Act. The reasons recorded and the consequential effect taken by the Income Tax Officer are summarized by the Commissioner (Appeals) as under: