BALADIN RAM KALWAR Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner is an individual. He constituted a Hindu undivided family with his sons. THE Hindu undivided family was assessed to income-tax for the year 1944-45 on February 29, 1945. Subsequently, proceedings under section 34 of the Income-tax Act, 1922, were taken against the Hindu undivided family and it was reassessed on March 23, 1949, by an order determining the total income at Rs. 71,731. This assessment was set aside by the Income-tax Appellate Tribunal. Fresh proceedings under section 34 were taken resulting in an assessment order dated March 18, 1954. Against the two reassessments under section 34, the Hindu undivided family proceeded in appeal to the Appellate Assistant Commissioner and then to the Income-tax Appellate Tribunal, but its appeals were dismissed. A reference under section 66(1) of the Act was answered by this court against the Hindu undivided family, and now an appeal by special leave under article 136 of the Constitution is pending before the Supreme Court. Certain other questions of law have not been referred by the Appellate Tribunal to this court and the reference is pending. Four notices of demand were serves upon the Hindu undivided family by the Income-tax Officer pursuant to the assessments made upon it, one dated February 21, 1945, in respect of the reassessment under section 34, which was subsequently set aside by the Appellate Tribunal, the third dated October 16, 1952, in respect of the first subsisting reassessment under section 34 dated October 16, 1952, and the fourth dated March 18, 1954, in respect of the further reassessment under section 34. Now although the assessment order dated March 23, 1949, had been set aside in appeal by the Appellate Tribunal, the Income-tax Officer issued a certificate under section 46(2) subsequently, for recovery of the tax demanded consequent to the order. He also issued a recovery certificate to further reassessment under section 34 made on March 18, 1954. So far as this demand is concerned, it has not been disturbed in appeal.

(2.) NOW followed a series of assessments where the income originally determined was reduced in appeal.

(3.) FOR the assessment year 1950-51, an assessment order was made determining the total income at Rs. 1,13,618 and the tax liability was computed at Rs. 47,460-14-0. A recovery certificate in respect of the same was issued on March 28, 1956. Against this assessment, the petitioner appealed to the Appellate Assistant Commissioner. The Appellate Assistant Commissioner deleted a sum of Rs. 14,655 under the head "interest" but added a sum of Rs. 14,500 as income represented by cash credits. As the deletion almost balanced the addition, the Appellate Assistant Commissioner did not enhance the assessed income and the original figure remained. The Hindu undivided family preferred a second appeal to the Appellate Tribunal, which resulted in the reduction of the assessed income by Rs. 5,880 by an order dated October 24, 1960. No fresh notice of demand was issued by the Income-tax Officer.