COMMISSIONER OF INCOME TAX Vs. MODU TIMBLO

JUDGEMENT

(1.) THIS is a consolidated reference under section 256(1) of the Income -tax Act, 1961, made by the Income -tax Appellate Tribunal, ('the Tribunal') on eight reference applications, four by the Department and four by the assessee, as they involve common facts and questions of law and arise out of a consolidated order of the Tribunal. The questions of law referred by the Tribunal are as follows :

(2.) THIS reference relates to the assessment years 1973 -74 and 1974 -75. For these two years, the assessments were made by the Income -tax Officer on the 'body of individuals' consisting of Mr. Modu Timblo and his wife, Mrs. Sushilabai M. Timblo, and also on Mr. Modu Timblo as 'individual'. There were six appeals before the Tribunal for these two years - two by the Income -tax Officer against the Appellate Assistant Commissioner's orders in the case of Mr. Modu Timblo, individual, and out of the other four appeals, two were by Mr. Modu Timblo, individual, in respect of his individual assessments, and two in respect of the assessments made on the body of individuals consisting of Mr. Modu Timblo and his wife. These appeals were disposed of by the Tribunal by a consolidated order. Against the above consolidated order of the Tribunal in the above appeals, there were four reference applications by the Commissioner, two each by Modu Timblo, individual, and Modu Timblo, representing the body of individuals. The reference applications were filed by the Commissioner in respect of the Tribunal's order in the case of the body of individuals and in the case of Modu Timblo, individual. On all these applications of the Commissioner as well as the assessee, this consolidated reference has been made by the Tribunal.

(3.) FOR the assessment years 1973 -74 and 1974 -75, the Income -tax Officer made two assessments for each year. One assessment was made on the communion which was treated as a 'body of individuals' as defined in section 2(31) of the Income -tax Act, 1961. In the assessment on the body of individuals for the assessment years 1973 -74 and 1974 -75, income from the following sources was included :