AMBIKA PRASAD SONAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference has been made by the Income-tax Appellate Tribunal in compliance with the directions given by this court under Section 256(2) of the Income-tax Act, 1961 (hereinafter to be referred to as "the Act"), at the instance of Ambika Prasad Sonar who has been assessed in the status of a Hindu undivided family.

(2.) THE assessment years in dispute are 1973-74 to 1977-78. Returns for all these years were filed by Ambika Prasad (hereinafter referred to as an "assessee"), claiming therein the status of an individual. THE assessments were, however, framed in the status of a Hindu undivided family.

(3.) THE assessee took up the stand that his brothers had separated since long. THEy were doing their separate businesses in their own names. In the statements recorded on oath by the Income-tax Officer, both Panna Lal and Prem Chand had stated that there was a partition in the family on May 19, 1965. A copy of family partition deed in support of such a claim was also filed before the Income-tax Officer. However, both the brothers could not give the names of the witnesses who were the signatories to the partition deed. THE Income-tax Officer recorded a finding that the partition deed was a got-up document that had been prepared after he had instituted an enquiry by giving show-cause notice to the assessee. While rejecting the assessee's claim for partition, he framed the assessment in the status of a Hindu undivided family. In computing the total income, he clubbed the income earned by the two brothers in their names to the income returned by Ambika Prasad. Similar assessments were made for other years in the status of a Hindu undivided family after giving notice to the assessee in respect of each of the other four years in dispute.