SHEWARAM D BHATIA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS a reference under section 66(2) of the Indian Income -tax Act, 1922.

(2.) ONE Shewaram D. Bhatia was assessed to income -tax in respect of the two assessment years 1947 -48 and 1948 -49. In respect of each of those two years Shewaram had two different accounting years in respect of different sources of his income, the later of the two years ending on 31st March of each year. After the assessments were over, Shewaram died on 12th September, 1950. He left him surviving as his only heirs his wife, an adopted son and a daughter. Both the latter were minor at all times material to this reference. After his death, a notice was issued under section 34(1) (b) of the Income -tax Act. The notice was addressed to 'late Shri Shewaram D. Bhatia by legal heir, his widow, Parmeshwaribai.' The notice was served on one Pessumal on 29th March, 1956. Thereafter, Parmeshwaribai with her letter dated 29th October, 1956, sent two returns, one in respect of each of the said two years. IN the covering letter she took certain objections to the assessment proceedings started under section 34.

(3.) THE Tribunal held that the service of the notice on Pessumal was valid service. As regards Parmeshwaribai's second contention, the Tribunal held that the son and the daughter were minors, that Parmeshwaribai was their guardian, that there was no conflict of interest between her an the two children, that there was nothing to suggest that the Income -tax Officer could not have believed bona fide that she could represent the estate, that he could bona fide entertain the belief that she could represent the estate and that the assessment proceedings were valid and binding on all of them. As both these points were decided against Parmeshwaribai, this reference has been made at the instance of Parmeshwaribai.