COMMISSIONER OF INCOME TAX Vs. HARI OM COMPANY

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Allahabad Bench, Allahabad, has, at the instance of the Commissioner of Income-tax, Kanpur, made this reference under section 66(2) of the Indian. I.T. Act, 1922 (hereinafter called " the Act "). THE questions referred soliciting the opinion of this court are as under :

(2.) THE respondent-assessee was a partnership firm and during its assessment for the assessment year 1956-57, the accounting period ended on June 21, 1955, the ITO found that the assessee-firm had been dissolved on April 18, 1956, and for the period from June 22, 1955, to April 18, 1956, relevant to the assessment year 1957-58, he wanted to make a premature assessment under section 25(1) of the Act and hence gave a notice under section 22(2) on December 20, 1956. In pursuance of that notice the assessee filed a return on March 18, 1957, showing an estimated income of Rs. 1,40,000. On the same day, the ITO made a provisional assessment under section 238 of the Act and determined a sum of Rs. 57,032 as tax payable by the assessee. THE assessee did-pay that amount. Subsequently, on April 9, 1958, the assessee filed a revised return showing an income of Rs. 1,82,249 mentioning in the return that it was for the year 1957-58, the accounting period ending on April 17, 1956. THE ITO completed the assessment on February 28, 1962, determining the total income at Rs. 2,29,609.

(3.) THE assessment was made by the ITO treating the assessee as an unregistered firm. THE AAC on appeal held that since the assessment had been set aside and no proper assessment could be made on the assessee for the assessment year 1957-58, the question of refusing registration did not arise. On further appeal, the Appellate Tribunal agreed with the AAC.