GANESHI LAL AND SONS Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) BRIEFLY stated, the facts giving rise to these three petitions, seeking relief under Article 226 of the Constitution, are that in the City of Agra, there is a firm which carries on business in the name and style of M/s. Ganeshi Lal and Sons, During the year relevant to the assessment year 1967-68, the firm had ten partners who used to be, in respect of their share income from the firm, assessed to income-tax as individuals. It is claimed that during the year relevant to the assessment year 1968-69, some partners of the firm retired as a result of which the firm stood dissolved and a new firm consisting of the remaining partners came into existence and this new firm continued to carry on the business in the same name. Subsequently, there were other variations in the firm and the firm, as it stands today, is constituted of eight partners. Some of those partners are, in respect of the share income derived by them from the firm, being assessed as individuals, the remaining partners are, in respect of such share income, being assessed as members of their HUF.

(2.) IN due course, the firm was assessed to income-tax for the assessment year 1966-67, and for the same year, its partner, namely, Shri Sheo Mohan Lal, representing his HUF, was assessed to tax under the provisions of the W.T. Act.

(3.) THE three petitioners then filed objections before the ITO and the WTO. THEy claimed that the proceedings initiated against them were illegal and, as such, they should be dropped. However, as the ITO and the WTO did not agree to drop these proceedings and they intended to continue the same, the petitioners approached this court for obtaining necessary relief under Article 226 of the Constitution.