COMMISSIONER OF INCOME TAX Vs. BENI PRASAD TANDON

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal has referred for the court's opinion this question :

(2.) LET us give the pertinent facts now. Shri B. P. Tandon, the assessee, filed returns for the assessment years 1958-59 and 1959-60. The returns were filed in the status of individual disclosing his income from all sources. Subsequently, he filed two separate returns. In one return he showed income in the status of an individual. In the other return he showed income as the karta of a Hindu undivided family. In the first return his remuneration for services rendered to Lala Manmohan Das Trust was shown as his personal income ; in the other return income of the Hindu undivided family of which he was the karta was shown. The Income-tax Officer did not pass any order on the return filed by him in the status of a Hindu undivided family. But, he held that the entire income was assessable in his hands in the status of an individual. He filed two appeals before the Appellate Assistant Commissioner. They were dismissed. On a further appeal, the Tribunal held that the income other than the dividends from the shares held by him as a beneficiary and his remuneration for services rendered to Lala Manmohan Das Trust belonged to the Hindu undivided family of which he was the karta and did not belong to him in the status of an individual. After the order of the Tribunal, the Income-tax Officer passed an order on the return submitted by Shri B. P. Tandon in the status of a Hindu undivided family of which he was the karta. The Income-tax Officer was of the view that the said return was pending. Against that order Shri B.P. Tandon filed an appeal before the Appellate Assistant Commissioner. The appeal was dismissed. An appeal was taken to the Tribunal. Following the decision of this court in Raghunath Prasad Tandon v. Commissioner of Income-tax, the Tribunal held that although the return filed by Shri B. P. Tandon in the status of a Hindu undivided family was not " disposed of factually ", it was " virtually disposed of ". On that view the Tribunal further held that the return was not pending and the Income-tax Officer could not make Any assessment on the basis of it.

(3.) AT the outset the reference was listed before a Division Bench. It seems that the Division Bench felt some doubt about the correctness of the decision in Raghunath Prasad Tandon v. Commissioner of Income-tax, [1964] 51 I.T.R. 763, 772 (All.); so it has referred the reference to a larger Bench. In Raghunath Prasad Tandon, Shri Justice Desai said :